US Tariff / These Indian companies will get a lifeline from US tariffs, their income will increase

US Tariff: India is moving towards a new era amid changing equations on international trade. The tariffs imposed by the US on China and other countries are proving to be no less than a panacea for Indian companies. Indian companies like Dixon Technologies, Tata Consumer Products, Blue Star and Havells are now facing a flood of business inquiries from US partners. This situation is a sign of further strengthening the proposed bilateral trade agreement (BTA) between India and the US.

Dixon Technologies is expanding capacity

According to ET report, Dixon Technologies has seen a huge increase in its order book and now the company is preparing to increase production capacity by 50%. The special thing is that a large part of this increased capacity will be for export to North America. There is also a plan to significantly increase the production volume through Compal for a big American brand, which will open up new export opportunities.

Google also wants to export smartphones from India

India has also taken a big leap in smartphone manufacturing. According to media reports, Dixon Technologies' major customer is Motorola, which exports handsets for the US market. Google is also planning to export its Pixel smartphones from India. Even though the US has appealed to companies like Apple and Samsung to produce domestically and has threatened a 25% tariff, experts believe that manufacturing in India and then exporting to the US is still a more economical deal for the companies.

FMCG and electronics companies are also ready

Tata Consumer Products CEO Sunil D'Souza said that products like coffee and tea are not manufactured in the US, so they are not behind anyone in terms of competition. Similarly, Havells has also sent the first consignment of air conditioners manufactured in India to the US. The company management says that India will get direct benefit of the proposed BTA.

Changes in tariff structure and India's position

Currently, the US has reduced the tariff on China from 145% to 30%, while it has imposed only 10% tariff on India. There is a possibility of re-imposition of 26% tariff on India from July, but till then Indian companies have got a golden opportunity to establish themselves in the US market.

Better than expected improvement in margins and profits

Amidst increasing orders and export prospects, Indian companies believe that margins will also return to normal soon. Financial performance and profits are expected to be better in the second half. Especially in the textile sector, more demand and production is expected to increase this year compared to last year.