India's electronics exports are experiencing a significant boom, primarily fueled by increasing iPhone production and exports, positioning the sector to potentially overtake petroleum as the country's second-largest export category. This shift signifies a major transformation in India's trade landscape, with electronics emerging as the fastest-growing sector.
Record iPhone Exports Drive Growth
Apple has achieved a record $10 billion in iPhone exports from India in the first six months of fiscal year 2025, marking a remarkable 75% increase compared to the $5.71 billion recorded in the same period last year. In September 2025 alone, iPhone exports reached $1.25 billion, a 155% jump from $490 million in September 2024. This surge occurred despite strong domestic demand for the newly launched iPhone 17 series. For the first time, all iPhone 17 models are being produced in India for global markets right from their launch, eliminating previous delays for Pro models.
Expanded Manufacturing Capabilities
Apple's increased production and exports are largely attributed to the commissioning of two new factories in April 2025: Tata Electronics' Hosur plant and Foxconn's Bengaluru facility. With these additions, India now has five iPhone manufacturing units, significantly boosting production capacity. In FY25, Apple's vendors in India produced $22 billion worth of iPhones, with 80% of them (approximately $17.5 billion) being exported. This represents a substantial increase from $2 billion in FY22, highlighting India's growing role in Apple's global supply chain.
Broader Electronics Export Growth
While iPhone exports have played a crucial role, India's overall electronics exports have also experienced substantial growth. In FY 2024-25, total electronics exports surged to $38.57 billion, a 32.47% increase compared to the previous year. This growth is driven not only by smartphones but also by non-smartphone sectors like solar panels, telecom equipment, medical electronics, batteries, and digital processing units. Non-smartphone electronics exports exceeded $14 billion in FY 2024-25.
Government Initiatives and Policy Support
The Indian government's focus on developing the electronics manufacturing sector through initiatives like "Make in India" and "Atmanirbhar Bharat" has been instrumental in attracting investment and boosting production. The Production-Linked Incentive (PLI) scheme, which provides incentives to companies for increasing production, has also played a significant role in driving exports. The PLI scheme has incentivized exports and aims to produce 1 billion mobile phones by 2025.
India as a Global Electronics Hub
India has emerged as the world's second-largest mobile phone manufacturer. The country's electronics production has increased nearly six-fold, from ₹1.9 lakh crore in 2014-15 to ₹11.3 lakh crore in 2024-25. Electronics exports have grown eight times during the same period, from ₹38,000 crore to ₹3.27 lakh crore. The sector has also generated 25 lakh jobs in the last 10 years. The top five export destinations for Indian electronic goods in FY 2024-25 are the United States, United Arab Emirates, the Netherlands, the United Kingdom, and Italy.
Challenges and Future Outlook
Despite the impressive growth, India's electronics manufacturing sector still faces challenges, including a reliance on imports for electronic components. However, the government is actively promoting the development of a domestic semiconductor ecosystem to reduce this dependence. India aims to achieve $200 billion in electronics exports by 2030. With continued policy support, infrastructure development, and a focus on innovation, India is well-positioned to become a global electronics manufacturing powerhouse.
