India electronics imports from Vietnam rose 9.5% to $5,364.61 million in FY26, government data show, as smartphone and wireless-earbud makers increased sourcing from the country amid a nearly fivefold rise in memory-chip prices over the past year.

Key Takeaways

  • Electronics imports from Vietnam were approximately $4,896 million in FY25.
  • Eligible goods can qualify for preferential tariffs under the ASEAN–India trade agreement.
  • An industry veteran said some companies were importing finished earbuds because doing so was cheaper than manufacturing them in India.

India electronics imports and the tariff advantage

Industry sources said manufacturers have spent the past year using the duty-free structure to import smartphone components and other electronics in bulk. Displays, camera modules and Bluetooth earbuds are among the products that can enter from Vietnam at zero duty, an industry veteran said.

Preferential rates under the ASEAN–India Trade in Goods Agreement depend on goods meeting rules of origin and being accompanied by a valid certificate of origin. Standard most-favored-nation tariffs for most electronics typically range from zero to 20%.

Manufacturing incentives face import competition

The industry veteran said many importers were Chinese companies with manufacturing or assembly units in India. Some companies had also established manufacturing units in Vietnam rather than India, the person said, without naming them.

The person argued that zero-duty imports could make local display manufacturing less attractive despite 4% incentives available under India’s Mobile Phone Manufacturing Scheme and Electronic Components Manufacturing Scheme. That concern is an industry assessment, not a finding that the imports breach trade rules.

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