Electronics exports in India has seen tremendous growth as it became the fourth largest exported item in the Q1, 2023-24. It was sixth spot last year. Additionally, it grew the fastest amongst the top 30 exported items from India. As per an analysis of the data released by the Ministry of Commerce, electronics exports grew over 56% in the April-June period. India exports were Rs 57,220.24 crore as against Rs 36,533.18 crore in the same period last year.
According to few experts, electronics is likely to emerge as the third largest category of exports in the coming quarters. Also its gap with the current gems and jewellery segment is narrowing fast. Electronics have overtaken chemicals and drugs and pharmaceuticals to jump from sixth largest exports category to become the fourth largest in Q1 FY24.
Electronics is the only category which record growth in top 5 sectors in India. Leading the charge in the electronics sector are mobile phones. which have exhibited tremendous growth following the introduction of the government’s production-linked incentive (PLI) scheme in 2020.
In the last 15 months, mobile phones have been the primary driver of growth in electronics exports. They contributed a staggering 52% to the total electronics exports from India in the first quarter of the current fiscal year, amounting to Rs 30,000 crore. Altogether, this marks a significant increase from the 38% contribution seen a year ago.
Apple’s iPhones have played a dominant role in the surge of mobile phone exports. It constitutes 35% of all electronics exports and an impressive 66% of total mobile exports in Q1. The iPhone models 12, 13, and 14 are among the devices exported from India. Their production is handled by three vendors from their assembly plants in Tamil Nadu.
India recently completed FY23 with a staggering $25 billion electronics exports. Minister Rajeev Chandrasekhar have a target to acheive $300 billion exports by 2027. PLI plays crucial rule for the target.