April 12, 2025
As the US-China trade war intensifies, India is emerging as a key beneficiary, capitalizing on shifting global trade dynamics and supply chain realignments.
📱 Surge in Smartphone Exports
Between January and March 2025, India experienced a significant increase in smartphone exports to the US, reaching over $23 billion for the fiscal year ending March 2025. Apple iPhones accounted for more than $17 billion—approximately 75% of total smartphone exports, up from 65% the previous year. This surge is attributed to efforts to preempt US tariffs announced by President Trump on April 2, highlighting India’s growing role in the global tech supply chain.
🛢️ Strategic Energy Investments
GAIL India Ltd has issued a tender to acquire up to a 26% equity stake in a US liquefied natural gas (LNG) project, along with a 15-year agreement to import 1 million metric tons of LNG annually starting between 2029 and 2030. This move supports India’s strategy to reduce its $45.7 billion trade surplus with the US and increase energy imports, potentially enhancing price competitiveness.
📈 Expanding Export Opportunities
India’s exporters are better positioned compared to competitors facing higher US import duties. With ongoing negotiations for a bilateral trade agreement with the US, India could gain further advantages. Sectors like marine may need to explore new markets, while the government supports exporters to seize opportunities arising from the US-China trade war.
🌐 Navigating Global Trade Shifts
While the US-China trade war presents challenges, it also offers India a chance to strengthen its position in global trade. By enhancing domestic manufacturing and forging strategic trade partnerships, India can leverage the situation to its advantage.
