New Delhi: The sizzling success story of India’s electronics industry, once crowned the brightest star under the Make in India campaign, now faces a fresh storm. Why? Because the US just cut its hefty tariffs on Chinese electronics from 20% to 10%. This sharp drop could burn India’s hot streak in exports! The India Cellular and Electronics Association (ICEA), which includes giants like Apple, Google, Motorola, Foxconn, Vivo, Oppo, and Tata Electronics, sent a strong warning to the government on November 6. In their letter, ICEA explained that the tariff slash, effective November 10, wipes out a 10% cost advantage India enjoyed over China. They said, “if sustained or further relaxed, this development could materially affect India’s export competitiveness, investment attractiveness and production momentum under the production linked incentive (PLI) scheme.” Think of it like this: India’s electronics exports have been racing ahead because of the US tariffs on China. Now the race is getting tighter. For many years, India’s electronics exports surged partly due to the US slapping tariffs on China under Section 301 of the US Trade Act. This helped India’s exports shoot up 42% in the first half of fiscal year 2026, hitting a whopping $22.2 billion, with smartphones alone zooming 60% to $13.4 billion. But with the tariffs on China now halved, this advantage could fade fast. ICEA pointed out that China is no ordinary competitor. With massive government subsidies, top-notch infrastructure, and huge economies of scale, a drop in tariffs means China could regain its strong position. This change might even pull global manufacturing back to China, reversing the hard-won trend of diversification. Earlier, despite some global tariff hikes by the Trump administration, electronics from India and other countries entered the US duty-free, while Chinese goods faced a 20% tariff—giving India a sweet export edge. But that edge is now in danger as fentanyl-related tariffs on China go down, and possibly disappear. How big was the cost gap before? ICEA said in 2019, India’s electronics manufacturing costs were 18-19% higher than China’s. Thanks to policies like the smartphone PLI scheme, this margin shrank to about 12%. Factors like lower capital expenses, better logistics, and tax benefits helped. Now, the game is changing again. The big question: Will the government keep backing the electronics sector strongly? The industry’s voice is clear—they want continued support to keep the Make in India dream alive amid these shifting global trade winds. India’s export story might still sparkle, but only if it navigates these tricky tariff twists smartly!