Consumer durable companies in India have begun early-stage talks with US importers at a time when the tariffs levied on Indian products are lower than those on competitors such as China.
While the discussions started some time ago, many believe that the Donald Trump administration’s tariff measures will help Indian companies expand their presence in the US market.
The US has imposed an additional 34 per cent tariff on China, a major exporter of consumer electronics and consumer durables, on top of the 20 per cent introduced in two rounds earlier this year, bringing the total tariff on China to 54 per cent.
Other major consumer durables and electronics manufacturers in Asia include Vietnam and Thailand.
The US has imposed a 46 per cent tariff on Vietnam and 36 per cent on Thailand.
Consequently, India has become a favourable destination for exports due to lower tariffs, which now stands at 26 per cent.
The US will be looking to import television sets, television panels, washing machines, air conditioners, and other home appliances.
“We have already begun basic dialogue with importers for categories like television panels.
"We are also exploring other consumer durable categories as US importers see India and Dixon Technologies as a favourable option,” Atul Lall, managing director at Dixon Technologies (India), told Business Standard.
Avneet Singh Marwah, chief executive officer of Super Plastronics, is also of the opinion that India now has an opportunity to become a favourable destination for electronics and consumer durables exports and the current tariffs will see a sudden shift to India.
“The US will look at importing television panels, washing machines, and other categories.
"We will start exploring the US as an option and India will be one of the cheapest television manufacturers in the world compared to other Asian countries,” Singh said, adding that the company is looking for some clarity on tariffs.
Sudhir Goyal, chief financial officer at Amber Enterprises India, a company looking to export air conditioner motors and air conditioners to the US, said that the company has been preparing to export to the US for a while.
“The tariffs will give Indian suppliers a leg up compared to other countries.
"This will help US importers to move orders to India at a faster speed.
"There is a big delta in costs with competing countries,” Goyal said.
He added that the company regularly looks at various customers globally to expand the number of markets where it exports.
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