25% American tariff shocks Made in India iPhone construction scheme! This effect will be on India
The US has announced 25 percent import duty and an additional temporary fine on all products imported from India from August 1. This decision can have a major impact on India’s iPhone manufacturing schemes and exports of electronics products. According to PTI news, this decision has been taken at a time when India’s electronics sector is already affected by China’s supply restrictions. China has banned the supply of important components, machinery and technology professionals, causing the Indian production chain to be interrupted.
Application on Apple’s ‘Make in India’ scheme!
IDC India Associate Vice President Navkinder Singh said that this tariff will give a big blow to Apple’s strategy to make India a iPhone export hub. He said that the US is about 25% of Apple’s total iPhone sales, ie about 60 million units annually. To meet this demand, it was necessary to increase the production capacity in India, but the new tariff could make the scheme unstable.
Apple plans to increase iPhone production in India from 35-40 million units to 60 million units by the year 2025-26. All iPhones sold in the US in the April-June quarter were assembled in India, which were sent from the Foxconn factory in Tamil Nadu.
What do experts say?
Prabhu Ram, vice -president of cyber media research, said that more cost will have a direct impact on iPhone exports from India, which may reduce demand in the US market and Apple may have to restore its global supply chain. ELCINA general secretary Raju Goyal believes that the US can also add 15% additional tariffs with 10% of the current fee. This will also affect the export of telecom, auto and consumer electronics products, not just mobiles.
Dependence on China became a challenge
India’s construction process has been directly affected due to the restrictions imposed on raw materials and technology supply by China. Until alternative supply sources are developed, this crisis will remain and the cost of production will continue to increase. Semi India President Ashok Chandak said that if this tariff of America is permanent, India may suffer competitive loss compared to other Asian countries.
He advised that India should now work towards finding new export markets, promoting indigenous brands and moving in value chains, so that such tariff crises can be avoided in future.
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