Trump’s tariffs spark surge in Indian electronics manufacturing

Indian electronics manufacturers appear poised to gain the most from Trump’s tariffs, as they expand their role in global supply chains.

According to a recent report, Apple has decided to relocate all iPhone production for the US market to India. HP also announced plans to double its production capacity in the country this year, leveraging the government’s production-linked incentive (PLI) scheme to manufacture more laptops, computers, and other electronics, Caliber.Az reports via foreign media.

HP’s manufacturing partner in India, Dixon Technologies—which also produces for brands like Samsung, Panasonic, Motorola, and Philips—has seen its share price double in the past year, now trading above ₹16,200. Other mid-sized manufacturers are experiencing similar momentum.

For instance, PG Electroplast, which supplies home appliances for companies such as LG, Whirlpool, and Voltas, saw its share price soar from ₹200 last year to a peak of ₹1,000 in January, currently hovering around ₹900. Avalon Technologies, which serves sectors from clean energy to aerospace, has gained 80 percent over the past year. Meanwhile, Kaynes Technologies posted a 120 percent increase over the same period. 

The government's PLI scheme has played a major role in bolstering the order books of these companies. However, sustaining their growth will depend on their ability to help global clients diversify away from China by building resilient supply chains. That task may be challenging. 

As noted, “Apple shifting its manufacturing of America-bound iPhones from China to India has not gone down well in the US,” since Trump’s tariffs were “(at least theoretically) meant to bring manufacturing back home, and not to a third country.”

Still, reshoring to the US in the short to medium term appears unlikely, due to a lack of dependable labour, domestic supply chains, and policy clarity. This gives Indian manufacturers a crucial—though limited—window of opportunity to solidify their position in the evolving global industrial landscape. To capitalise on this, they must scale up their recent wins rapidly.

By Naila Huseynova