India emerges as key player in U.S. tech supply chains amid China shift

Flags of the US and India. Photo: Unsplash

iNDICA NEWS BUREAU-

India’s trade with the USA has seen significant growth, with both countries recording strong bilateral exports in December, despite disruptions in global shipping due to geopolitical tensions.

India’s merchandise exports to the U.S. rose by 8.5% in December, reaching $7 billion. Similarly, U.S. exports to India increased by nearly 10%, amounting to $3.77 billion.

Key imports from the U.S. to India included petroleum products, coal, coke, and electric machinery and equipment. This reflects a growing, mutually beneficial trade relationship, with both countries gaining from increased exchanges.

During the first nine months of the 2024-25 financial year (April-December), bilateral trade between India and the U.S. totaled $93.4 billion, nearly matching India’s trade with China, which stood at $94.6 billion over the same period.

One standout area is the rise in India’s electronics exports to the U.S., which jumped 27.4% to $22.5 billion in April-November 2024-25, up from $17.66 billion in the same period the previous year.

This growth has been sustained over the past two years, with electronics exports from India to the U.S. more than doubling to $6.6 billion between January and September 2023.

This surge is partly driven by sanctions on China, which have pushed U.S. tech companies like Apple to seek alternatives for their supply chains. India, with its large domestic market, has emerged as a prime location for such shifts. Electronics now occupy the third spot in India’s export sector, behind only engineering products and petroleum, up from sixth last year.

Smartphone exports have seen a remarkable 45% growth, with Apple and Samsung ramping up production in India. Apple’s presence, supported by suppliers like Foxconn, Pegatron, and Tata Electronics, has been a major factor in this boost. Other electronics such as consumer goods, solar modules, desktops, and routers have also seen notable increases.

Looking ahead, electronics exports are expected to grow even further as India develops its semiconductor manufacturing capabilities.

Additionally, India’s apparel exports have recorded an 11.6% increase, reaching $11.31 billion during April-December 2024. This growth has been fueled by demand in major markets like the U.S., UK, and Germany.

As per an IANS report, the Apparel Export Promotion Council (AEPC) remains optimistic about the sector’s future, citing improved product quality, adaptability to market trends, factory compliance, and government policies that support the industry.

(Photo courtesy: Unsplash)

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