India-US Trade Deal: Will Smartphones Become Cheaper? Experts Weigh In on Tech Sector Changes

The recent India-US trade agreement has raised questions about its impact on India’s smartphone and technology sector. Will this deal make smartphones more affordable? What changes can be expected in electronics and semiconductors? NBT Tech spoke with Rajeev Singh, Managing Director of BenQ India & South Asia, for expert insights.

Opportunities for India’s Tech Sector

The trade deal reduces tariffs on Indian goods exported to the US from 50% to 18%, opening significant opportunities for Indian technology companies. According to Rajeev Singh, this will allow Indian companies to expand their global presence and become more competitive. Electronics and hardware manufacturers, in particular, stand to benefit from easier access to international markets, lower production costs, and increased collaboration with foreign companies.

Companies involved in display technologies and digital solutions can also expect advantages, as reduced tariffs will make importing components easier and help boost exports. These developments coincide with India’s ongoing efforts to promote semiconductors and electronics manufacturing domestically.

Impact on Gadget Prices

Experts suggest that the deal could make pricing more predictable, potentially leading to lower smartphone prices. However, the benefits may take time to reach Indian consumers. While prices could decrease, the immediate impact may not be visible, and it will take some time for cost reductions to translate into retail pricing. Apple, which manufactures iPhones in India for the US market, could be among the primary beneficiaries.

Boost for Semiconductors

The timing of the agreement is significant for India’s semiconductor ecosystem. With India focusing on chip design, testing, and local manufacturing, the trade deal could accelerate domestic production. Increased local manufacturing could not only reduce costs for consumers but also generate more employment opportunities in the electronics sector.

Advancing Telecom and 6G Development

The agreement may also support India’s telecom ambitions, particularly in advancing 6G technology development. By combining domestic innovation with American collaboration, India could strengthen its position in next-generation communication technologies.

Overall, the India-US trade deal is expected to strengthen India’s technology and electronics ecosystem, provide new growth avenues for local companies, and potentially make gadgets and smartphones more competitive in pricing over time.