India’s electronics industry, a shining star in the Make in India program, is sounding the alarm bells! The US recently cut fentanyl tariffs on China from 20% to 10%, and this move has shaken India’s export game. The India Cellular and Electronics Association (ICEA), which includes big names like Apple, Google, Foxconn, Vivo, and Tata Electronics, warned the government in a letter dated November 6 that this tariff cut sharply narrows India’s cost advantage by 10 percentage points. Since 2018, the US had kept high tariffs on China, helping India boost electronics exports to America. In fact, India’s shipments to the US soared by an exciting 42% to $22.2 billion in the first half of fiscal year 2026, with smartphones leading the charge at a 60% jump to $13.4 billion. But now, with US-China trade warming up, India’s special edge is at risk. ICEA said, "The reduction, and potential future removal altogether, of fentanyl-related tariffs on China, which had previously improved India’s competitiveness vis-à-vis Chinese imports and driven global supply chains to diversify, could now significantly restore China’s export competitiveness." The worry is real because China’s massive subsidies, advanced infrastructure, and huge factories could lure global manufacturing back to its soil — a big setback for India’s diversification efforts. Why has India thrived so far? The industry points to the PLI (Production Linked Incentive) scheme and favorable US tariffs that excluded electronics imports, allowing India to ship goods duty-free while China bore hefty 20% tariffs. But with the recent tariff cuts, this advantage is fading. ICEA also revealed India’s cost disadvantage against China was about 18-19% in 2019 but improved to 12% after the smartphone PLI scheme and other factors like better logistics, lower power costs, and tax benefits. Yet, this progress could face reversal if China regains its competitive spark. The industry is urging the government to keep the pedal pressed on supportive policies. The message is clear: "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." Can India hold its ground in this electrifying export battle? The industry hopes so, but the clock is ticking as global trade winds shift once again.