India Holds Back on Tariff Retaliation Amid U.S. Trade Talks
India has opted not to retaliate against U.S. President Donald Trump’s recent imposition of a 26% tariff on imports from the country, citing ongoing negotiations toward a trade agreement. According to Indian government officials, New Delhi is leveraging a clause in the U.S. tariff order that allows exemptions for countries taking “significant steps” to resolve non-reciprocal trade practices. India is positioning itself as a proactive negotiator, especially compared to regional peers like China and Vietnam, who have faced steeper trade barriers. As part of its efforts, India has already reduced duties on items like high-end motorcycles and bourbon and removed a digital tax that impacted major U.S. tech firms.
This non-retaliatory stance, officials say, may give India an edge in securing favorable terms in the trade deal expected by autumn 2025. While the tariffs could still dent India’s economy—potentially slowing growth by up to 40 basis points and hurting labor-intensive industries like diamond exports—New Delhi views long-term engagement with Washington as the more strategic move. For non-Indian companies, especially those operating in global supply chains or relying on stable India-U.S. trade ties, this signals a more predictable and less protectionist trade environment in the near term.
Editor’s Note: India has chosen not to retaliate against the U.S.’s recent 26% tariff on its exports, citing ongoing trade negotiations and a potential exemption clause for cooperative countries. By reducing duties on U.S. goods and removing a digital tax, India aims to position itself as a constructive partner and secure favorable terms in a deal expected by autumn 2025. While the tariffs may impact economic growth and industries like diamond exports, India sees long-term ties with the U.S. as strategically more important.
Apple, Samsung Ramp Up ‘Make in India’ Strategy to Offset U.S. Tariffs on China, Vietnam
Amid escalating U.S. tariffs on imports from China (now as high as 104%) and Vietnam (46%), global smartphone giants Apple and Samsung are turning to India as a key manufacturing and export hub. India’s ‘Make in India’ initiative is gaining fresh momentum as Apple begins shipping iPhones from its Indian factories to the U.S., bypassing higher tariffs and ensuring price competitiveness in a critical market. While this shift requires overcoming logistical and regulatory challenges, urgent efforts are underway to streamline customs and compliance processes. Apple’s partners Foxconn and Tata Group — the latter having acquired Taiwanese firms Wistron and Pegatron — are central to this expansion, which could grow beyond the estimated $10 billion in U.S.-bound shipments this fiscal year.
Samsung is also weighing India as a temporary solution to manage its U.S. exports. Industry officials indicate that unless Apple sets up new production hubs in lower-tariff countries like the UAE, Saudi Arabia, or Brazil (each with 10% U.S. tariffs), India could see a major surge in capacity and investment. For non-Indian companies, this trend underscores a strategic shift in global supply chains — highlighting India as an increasingly viable alternative for export-oriented manufacturing, especially for firms seeking to reduce exposure to U.S.-China trade tensions.
Editor’s Note: With U.S. tariffs on Chinese and Vietnamese imports soaring, Apple and Samsung are accelerating their ‘Make in India’ strategies to use India as a key manufacturing and export base. Apple has begun shipping iPhones from India to the U.S., supported by partners like Foxconn and Tata Group, while Samsung is also considering India as a short-term export solution. This marks a broader shift in global supply chains, positioning India as a growing hub for export-oriented manufacturing amid ongoing U.S.-China trade tensions.
India’s Tech IPO Wave Set to Revive Markets Amid Global Uncertainty
India is poised for a major revival in tech IPOs, with over 36 startups — collectively valued at $100 billion — gearing up to go public by 2027. This fresh wave includes big names like Flipkart, PhonePe, and Oyo Hotels, and marks a shift from the post-2021 IPO slump, where several high-profile listings faltered after debut. According to investment bank The Rainmaker Group, a key driver of this turnaround is stronger financial discipline, with two-thirds of upcoming IPO candidates already profitable. Despite a 34% drop in share sales in early 2025 and volatility in the Nifty 50 Index, optimism is rising as major listings such as LG Electronics’ India unit and Ather Energy line up.
For investors like SoftBank and Prosus, these IPOs offer vital exit routes from long-held stakes in companies like Lenskart, Meesho, and Urban Company. However, market watchers warn that pricing will be crucial, especially amid investor caution following poor post-listing performances from firms like Paytm. For non-Indian companies and global investors, this signals not just fresh opportunities in India’s fast-growing tech sector, but also a maturing startup ecosystem where profitability, transparency, and corporate governance are taking center stage — making India a more attractive and resilient destination for capital deployment.
Editor’s Note: India’s tech IPO market is set for a revival, with over 36 startups valued at $100 billion planning to go public by 2027, led by names like Flipkart, PhonePe, and Oyo. Improved financial discipline — with most upcoming IPOs already profitable — is driving renewed investor confidence despite recent market volatility. This wave presents key exit opportunities for global investors and highlights a maturing Indian startup ecosystem focused on profitability and governance.
India Gains Competitive Edge in Electronics Exports Amid U.S. Tariff Realignments
As U.S. President Donald Trump rolls out reciprocal tariffs for most global trading partners, India has emerged relatively well-positioned — especially compared to key electronics export rivals like China and Vietnam. With China facing combined tariffs of up to 79% and Vietnam at 46%, India’s comparatively lower rates offer a strategic window of opportunity. Industry bodies such as the India Cellular and Electronics Association (ICEA) credit this advantage to relentless diplomatic efforts. ICEA Chairman Pankaj Mohindroo emphasized that while this creates near-term export competitiveness, a bilateral trade agreement (BTA) with the U.S. remains vital for long-term tariff predictability and sustainable market access.
Despite the positive positioning, industry experts caution that reciprocal tariffs could still disrupt trade flows and affect profit margins. Ashok Chandak, President of IESA, noted that while India’s electronics imports from the U.S. are minimal, proactive policy and strategic negotiations will be key to maintaining balance. With electronics exports to the U.S. already hitting $10 billion in FY 2023-24 — led by $5.6 billion in smartphone shipments — India is expected to grow this figure to $13.5 billion in FY 2024-25. For non-Indian companies, especially those in semiconductors, hardware, and high-end components, India’s favorable tariff treatment and rapidly growing U.S. electronics trade make it a compelling destination for investment, manufacturing partnerships, and supply chain diversification.
Editor’s Note: India is gaining a competitive edge in electronics exports as U.S. tariffs hit rivals like China and Vietnam much harder, creating a strategic opening for Indian manufacturers. With exports to the U.S. reaching $10 billion in FY 2023-24 — largely driven by smartphones — India aims to grow this to $13.5 billion in FY 2024-25, supported by diplomatic efforts and favorable tariff treatment. While challenges like profit margin pressure and trade flow disruptions remain, the outlook is strong, making India an attractive hub for global electronics investment and supply chain diversification.
Indian Firms Embrace Agentic AI and GenAI at Scale Amid Challenges in Customization and Scalability
A new Deloitte report reveals that over 80 percent of Indian organizations are actively exploring autonomous agents, signaling a significant shift toward Agentic AI. The “State of GenAI – India Perspective” highlights the rising adoption of multi-agent workflows, with half of the surveyed companies identifying this as a key area of focus. Seventy percent of firms expressed strong interest in using Generative AI for automation, while 71 percent are running more than 10 GenAI experiments, showcasing an accelerating pace of AI-driven innovation. Notably, over 67 percent of organizations reported positive impacts from GenAI across the entire software development lifecycle, and around 70 percent achieved or exceeded expected returns on investment, with IT, customer service, marketing, operations, and product development emerging as AI adoption frontrunners.
However, challenges persist in scaling these efforts. Only 29 percent of organizations were able to scale even 30 percent of their AI proof-of-concepts, and usage among employees remains limited. Concerns over data quality, algorithmic bias, and errors with real-world consequences continue to hamper full-scale deployment. Most companies prefer buying AI tools over building them, which raises issues around customization, adaptability, and long-term sustainability. For global businesses, the Indian experience offers a valuable case study—highlighting the importance of balancing speed and scalability with robust governance, agile innovation, and the need to future-proof investments in an ever-evolving AI landscape.
Editor’s Note: A Deloitte report shows that over 80% of Indian firms are exploring Agentic AI, with strong interest in Generative AI for automation and widespread experimentation across IT, customer service, and product development. While many companies report positive returns and improved software development, scaling remains a challenge—only 29% have scaled even 30% of their AI pilots. Limited employee usage, concerns over data quality and algorithmic bias, and a preference for buying over building AI tools highlight the need for better customization, governance, and sustainable innovation strategies.
Bharat FIH Overhauls Board, Pivots Toward Apple Supply Chain Amid Xiaomi Setback
Foxconn group company Bharat FIH (BFIH) is undergoing a strategic transformation after a turbulent year marked by board-level resignations and a steep decline in orders from Xiaomi, its primary client. The company has reconstituted its board with the appointment of UExcelerate cofounder Payal Koul Mirakhur and chartered accountant Arun Todarwal as independent directors. With chairman Hui Chung Chen and managing director Abraham Joseph at the helm, the board is steering the company away from the crowded electronics manufacturing services (EMS) space. Instead, BFIH is repositioning itself as a service provider for Apple’s suppliers, working alongside major players like Foxconn Hon Hai, Pegatron, and Wistron (now part of Tata Electronics) in Chennai and Bengaluru. It has deployed trained personnel for equipment servicing and maintenance at these sites, seeking to deepen its presence in Apple’s vast supply chain.
The strategic shift comes after a challenging period that saw the potential shutdown of its Sri City plant, the departure of country head Josh Foulger, and increased competition from rivals like Dixon. Bharat FIH had long relied on Xiaomi and some Nokia contracts, but a failure to qualify for India’s PLI scheme, coupled with Xiaomi’s regulatory troubles and diversified EMS partnerships, led to a sharp downturn. For global companies, Bharat FIH’s pivot highlights the risks of over-reliance on a single client and the importance of aligning with resilient supply chains. It also underscores the growing opportunities for service-oriented roles within major ecosystems like Apple’s, particularly as manufacturing hubs expand in emerging markets like India.
Editor’s Note: Bharat FIH is restructuring its board and shifting focus from traditional electronics manufacturing to supporting Apple’s supply chain, following a steep drop in orders from former key client Xiaomi. The company is now providing equipment servicing at Apple-linked sites in Chennai and Bengaluru, aligning with major players like Foxconn and Tata Electronics. This pivot highlights both the risks of client dependency and the growing opportunity in service-oriented roles within resilient supply chains in emerging markets like India.
Indian Firms Prioritize Data Localization Despite Costs, See Privacy as Key to AI Success: Cisco Survey
A new Cisco survey reveals that 92% of Indian respondents believe storing data within national borders enhances security, even as data localization drives up operational costs. Interestingly, while most support domestic data storage, 95% also trust global providers over local ones for better data protection. Additionally, respondents widely agreed that unrestricted data flow could contribute significantly to the country’s economic growth. These findings reflect a nuanced stance—favoring both data sovereignty and global infrastructure reliability—as companies navigate the intersection of privacy, innovation, and regulation.
Cisco India & SAARC’s director of security business, Samir Kumar Mishra, emphasized that strong privacy laws are now viewed as business enablers, especially in the AI-driven digital landscape. Indian enterprises are increasingly deriving value from generative AI (GenAI), but the comfort to fully leverage AI depends heavily on robust data governance. For global businesses, these insights offer a roadmap to building trust in emerging markets—highlighting the importance of balancing global cloud capabilities with local regulatory compliance, particularly in regions where data sovereignty and AI innovation are rising in tandem.
Editor’s Note: A Cisco survey shows that 92% of Indian firms support data localisation for better security, even though it raises operational costs, while 95% still trust global providers more for data protection. Companies see strong privacy laws as key enablers for AI adoption, with robust data governance essential to unlocking GenAI’s full potential. This reflects a strategic balance between data sovereignty and global infrastructure, offering global businesses a roadmap for trust-building in emerging AI-driven markets like India.