India's export landscape is undergoing a significant transformation, with electronic goods emerging as a key driver of growth. In fiscal year 2024-25, electronics claimed the third spot in India's overall exports, and it has maintained this position while becoming the fastest-growing category in the first six months of fiscal year 2026.

Rapid Ascent in Export Rankings

The rise of electronics in India's export rankings has been remarkable. Electronics have jumped from 7th place in FY22 to 3rd in FY25, overtaking major sectors such as gems and jewelry, chemicals, pharmaceuticals, and readymade garments. This rapid growth is evident in the first half of FY26, where electronics exports surged by 42% to $22.2 billion, up from $15.6 billion in the previous year.

Key Growth Drivers

Several factors have contributed to the impressive growth of electronics exports from India:

• Government Incentives: The Production-Linked Incentive (PLI) scheme has been instrumental in attracting global manufacturing giants to establish operations in India. This scheme provides financial incentives to companies that increase production and exports.
• Smartphone Manufacturing: The PLI scheme for smartphones has particularly boosted the sector, with Apple making India its second-most important base for iPhone manufacturing after China. In the first half of FY26, Apple's iPhone exports accounted for over 75% of the total smartphone exports and a substantial 45% of the total electronics exports.
• Make in India Initiative: Government initiatives such as "Make in India, Make for the World" have created a better manufacturing ecosystem and diversified supply chains.
• Growing Domestic Demand: Rising domestic demand for electronics is also fueling the growth of the industry.
• Skilled Workforce: India possesses a skilled workforce that contributes to the competitiveness of its electronics sector.
• Strategic Location: India's strategic location makes it a favorable destination for electronics manufacturing and exports.

Top Export Destinations

The United States is the largest export destination for Indian electronics, commanding a 60.17% share. Other major export destinations include the UAE, China, the Netherlands, and Germany.

Leading Exporting States and Companies

Tamil Nadu has emerged as India's top exporter of electronic goods, accounting for about 30% of all goods manufactured for export from the state in FY24. Key electronics exporters in India include Samsung India, Sony India, LG Electronics India, and Bharat Electronics Limited.

Impact on the Indian Economy

The increase in electronics exports is significantly boosting India's economy by enhancing foreign exchange inflows. This sector's contribution is crucial to India's economic growth, supporting the nation's goal of becoming one of the top global economies.

Future Projections

Experts predict that if the current growth rates persist, electronics could replace petroleum as India's second-largest export by FY28. The government aims for $500 billion in domestic electronics manufacturing by 2030-31, with policy support from initiatives like the National Policy on Electronics (NPE) 2019. India's electronics exports are expected to rise from $28 billion in 2023 to $61 billion in 2030.