Zero tariffs draw Indian electronics buyers to Vietnam
India’s purchases reached US$5.36 billion in fiscal 2025-26, with duty-free access available to Vietnamese goods that meet origin requirements.
India bought US$5.36 billion in electronic goods from Vietnam during fiscal 2025-26, an increase of 9.5 per cent from approximately US$4.9 billion the previous year, according to Indian government figures reported by BusinessLine.
Industry sources told BusinessLine that manufacturers had expanded sourcing from Vietnam to use zero-duty provisions for eligible electronics. Smartphone and true wireless stereo (TWS) earbud makers were among those increasing imports, as memory chip prices nearly quintupled over the past year.
The ASEAN-India Trade in Goods Agreement makes preferential tariffs conditional on compliance with origin rules and valid origin certificates. Eligible goods can avoid most-favoured-nation duties, generally set between 0 and 20 per cent for most electronics.
An industry expert said screens, camera modules and Bluetooth earphones were entering India duty-free from Vietnam. Chinese companies running Indian factories or assembly operations accounted for most importers, the expert said, with more sourcing shifting to Vietnam rather than directly from China.
Separately, customs data published by Vietnam’s Ministry of Industry and Trade put combined exports of computers, electronics, phones and their components at US$189.65 billion as of October 15, 2026. These categories contributed around 40 per cent of the country’s export turnover. Within that total, computers, electronic products and components generated US$135.31 billion, a year-on-year increase of 65.2 per cent.
