Daily News - Friday, 8 August 2025

US tariffs may cost India’s electronics sector up to $30 billion (The Economic Times)

⁠India’s electronics industry is set to lose up to $20-30 billion in business opportunities in the coming years due to the US’s heavy tariffs, which may also extend to semiconductors, despite tariff exemptions likely for companies like Apple and Samsung that have manufacturing operations in India and major US investment plans. This situation will increase India’s reliance on smartphone exports, which already account for 72% of its $14.6 billion in electronics exports to the US in FY25, while non-smartphone exports such as inverters and battery chargers will face more challenges due to higher tariffs. As a result, India’s broader electronics ecosystem could suffer significant setbacks, especially as nearly $4 billion worth of non-smartphone electronics are already exposed to the 50% tariff, with further increases expected in semiconductor-related tariffs.

⁠Apple’s India plans immune to Trump’s tariffs tantrums (Financial Express)

Apple’s iPhone manufacturing in India remains unaffected by President Trump’s recent proposal to impose a 100% tariff on semiconductor chips, as the plan includes an exemption for companies manufacturing in the US or planning to do so, a category Apple falls under due to its $600 billion US investment. India’s competitive advantage in the electronics sector is further reinforced by the fact that Indian-made smartphones are not subject to the 50% tariff imposed by Trump on Indian goods, as these products are currently excluded from the Section 232 investigation, giving India an edge over China. India’s electronics exports surged 47% year-on-year, with mobile phone exports leading the charge, but analysts warn that any exclusion from US manufacturing incentives could jeopardise Apple’s and India’s smartphone production in the future.

⁠India pauses Russian oil purchase, considers offering concessions on agri and dairy products: Report (Financial Express)

In response to the US's new 50% tariff on Indian goods, which includes a 25% tariff on imports due to India's ongoing Russian oil purchases, India’s state-owned refiners have paused the purchase of Russian crude and are awaiting further instructions from the government. As the government explores potential trade concessions in agriculture and dairy to satisfy US demands without harming local farmers, it is also focused on negotiating with the Trump administration, hoping to maintain strategic independence. While the halt on Russian oil purchases could affect orders for October-loading Urals cargoes, Indian refiners may turn to alternative suppliers, including the US, the Middle East, and Africa, although a long-term shift away from Russian oil is unlikely due to its significant role in India's energy needs.

⁠India pauses $3.6 billion deal to acquire Boeing jets after Trump announces 50% tariffs: Reports (Financial Express)

India has paused a $3.6 billion deal to procure six Boeing P-8I maritime patrol aircraft, initially approved in 2021, due to a nearly 50% rise in costs driven by tariffs imposed by the US, supply chain disruptions, and inflation. The original $2.42 billion price tag has surged as Boeing faces higher costs for parts and components, which have been passed on to the Indian government, prompting a strategic reassessment by the Ministry of Defence. Meanwhile, Air India has begun retrofitting its legacy Boeing 787-8 Dreamliners in the US, with plans to join the fleet by the end of the year, aiming to complete retrofitting for two planes monthly thereafter.

Govt chalks out 4-pronged plan to blunt 50% tariff impact (Financial Express)

⁠In response to the US doubling tariffs on Indian goods to 50%, the Indian government has launched a four-pronged strategy aimed at mitigating the impact on exports, manufacturing, and jobs, though industry leaders stress the need for immediate subsidies to protect sectors facing severe pressure. Key strategies under discussion include diversifying export markets, shifting export focus, boosting domestic demand, and reforming the ease of doing business, but experts warn that these may not quickly bridge the competitiveness gap left by the tariffs, particularly against subsidised competition from China and other low-cost nations. Without targeted financial support, such as subsidies for critical sectors like textiles and electronics, India could risk losing its export markets permanently, with long-term consequences for jobs, manufacturing, and the economy.