(Commonwealth_India) Indian companies are increasingly viewing Donald Trump’s tariff measures as a strategic advantage, particularly in strengthening bilateral trade ties between India and the United States. Executives from leading Indian firms such as Dixon Technologies, Tata Consumer Products, Blue Star, Havells, and Arvind have shared with analysts that the current global trade dynamics have opened up new avenues for growth. According to these leaders, the ongoing discussions surrounding a potential India-US Bilateral Trade Agreement (BTA) will likely bolster commercial activities.
Even amid Trump’s calls for domestic manufacturing and threats of imposing a 25% tariff on international mobile phone manufacturers like Apple and Samsung, India appears to be emerging as a cost-effective manufacturing hub. Industry analysts point out that the economics of producing in India and exporting to the US still make sense, despite the uncertainty of future tariffs. They argue that manufacturing costs in India remain competitive enough to attract global companies looking to diversify their supply chains.
While US tariffs on Chinese goods have been significantly reduced from 145% to 30%, India’s tariffs—currently suspended at 26%—may be reinstated in July. At present, India only faces a 10% tariff on exports to the United States, which is a relatively advantageous position for Indian exporters. Many Indian firms see this window of opportunity as a time to strengthen ties with American partners and expand their international footprint.
During a recent earnings call, Atul Lall, the managing director of Dixon Technologies, announced a 50% expansion in manufacturing capacity for one of their largest clients. The expansion is aimed primarily at meeting rising demand for exports to North America. Lall referred to increased production for a major US brand through their collaboration with Taiwanese manufacturer Compal. Though he did not disclose the name of the client, industry analysts have identified Motorola as Dixon’s principal customer involved in US-bound mobile phone exports. Additionally, it has been reported that Google is also considering India as a manufacturing base for its Pixel smartphones, with exports to the US already being explored.
In the textiles sector, Arvind Ltd. is also experiencing rising demand from the US market. Punit Lalbhai, vice chairman of Arvind, acknowledged that while some strategic customers have been affected by cost increases, the company has partially absorbed those costs. The situation has had a short-term impact on margins for the first and second quarters. Nevertheless, he expressed optimism about the future, stating that order volumes from American clients have risen significantly. He also noted that the company’s ongoing investments in capacity expansion are beginning to yield results, positioning Arvind for substantial garment volume growth compared to the previous year. Lalbhai emphasized that, despite temporary margin pressures, the broader outlook remains positive, with expectations of stabilized profitability in the latter half of the financial year.
Other Indian exporters are echoing similar sentiments. Gokaldas Exports, in its investor presentation, highlighted that India has become a more attractive sourcing destination due to the combination of high Chinese tariffs and political instability in Bangladesh. Although the company acknowledged facing some short-term challenges, it stressed that India’s long-term competitiveness in the export space remains robust.
For consumer goods exporters like Tata Consumer Products, the competitive landscape is also considered favorable. CEO Sunil D’Souza pointed out that products such as tea and coffee, which are not domestically produced in large quantities in the US, provide a level playing field for all exporters. He believes that these niche product segments offer consistent export potential regardless of broader tariff developments.
Indian air-conditioning manufacturers are also making inroads into the US market. Havells has already shipped its first batch of India-made air conditioners to the United States. The company’s leadership has expressed confidence in India’s growing role in the US market, particularly as negotiations over the BTA progress. Similarly, Blue Star and Amber Enterprises have reported increased interest from potential American buyers, as companies in the US reevaluate their supply chains in anticipation of further tariff changes.
Titan Company is also preparing for potential shifts in the competitive landscape. R. Kuruvilla Markose, CEO of Titan’s international business, stated that the company is closely monitoring price dynamics in the US market and is hopeful for the swift finalization of the bilateral trade agreement. He added that Titan is strategically positioning itself to respond quickly to any developments that may result from evolving trade policies.
Across sectors—whether in electronics, textiles, consumer goods, or home appliances—Indian companies are seizing this moment of global trade realignment to expand their presence in the United States. With geopolitical uncertainties and trade negotiations shifting global sourcing strategies, Indian manufacturers are poised to play a more prominent role on the international stage. The current mix of competitive cost structures, supportive policy discussions, and increasing demand from the US market is creating a strong foundation for India’s export-led growth.
