India’s electronics exports have seen a remarkable surge of 28% in the first eight months of FY25, reaching an impressive US$ 22.5 billion. This growth marks a significant improvement from the US$ 17.66 billion during the same period in FY24, positioning electronics as the fastest-growing sector in India's exports. It has now moved up to third place, just behind engineering goods and petroleum.

This surge in electronics exports can be attributed to several factors, most notably the smartphone export boom. The government’s smartphone production-linked incentive (PLI) scheme has played a crucial role in driving this growth. Smartphone exports have soared by an incredible 45%, from US$ 9.07 billion in FY24 to US$ 13.11 billion in FY25. This impressive figure now accounts for 58% of India’s total electronics exports, with expectations that this share could reach 60-65% by the end of FY25.

A significant driver of this smartphone export boom has been the entry of Apple into India. The tech giant’s shift to local manufacturing has positively impacted India’s electronics export growth, with its vendors, such as Foxconn, Pegatron, and Tata Electronics, contributing substantially to the rise in smartphone exports. In fact, smartphones now account for nearly 40% of the overall electronics export value. Alongside smartphones, other key categories contributing to the export growth include solar modules, desktops, and routers.

Despite this growth, industry leaders, like the India Cellular and Electronics Association (ICEA), have emphasized the need for continued reforms, particularly in areas such as tariff structures and logistics. These reforms are necessary to ensure India maintains its competitive edge against other electronics manufacturing countries like China and Vietnam. According to the ICEA, such measures will help bolster India’s position in the global electronics export market.

One of the most notable aspects of India’s growing electronics exports is the close competition between electronics and petroleum exports. In fact, electronics exports are now approaching half the value of petroleum exports, marking a significant shift in the country’s export profile. Furthermore, the rise in smartphone exports has surpassed even traditional sectors, such as diamond exports to the US, highlighting the rapid growth and diversification of India’s export markets.

To support this growth and encourage export-led industrial development, the Indian government is currently reviewing its tariff structures. The goal is to ensure that domestic manufacturing remains competitive while fostering further growth in the electronics export sector. This will not only help India meet its export targets but also boost job creation and economic growth in the coming years.

India’s electronics sector is on a path of rapid transformation, with government policies, industry collaboration, and global demand playing key roles in shaping its future. For the electronics export sector, the government’s focus on the PLI scheme, coupled with continued reforms in tariffs and logistics, offers a bright outlook for the future. As the sector continues to grow, India is well on its way to becoming a global leader in electronics manufacturing and exports.

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