Electronic exports

India’s Electronics Exports Boom as Mobile Devices Lead 21.8% Growth

In a remarkable market surge, India's electronic growth has jetted 21.8% between April and August 2024-25, reaching $13.57 billion. This extraordinary gain has made electronics the Top 10 merchandise to export and is the fastest-growing commodity in India.

Driven by Apple Inc., the mobile devices have particularly shot up the sales accounting for 55.7% of total electronics exports. According to reports, three major vendors of Apple in India- Foxconn, Tata, and Pegatron - have collectively contributed $5 billion to mobile device exports.

With this development on the brink, electronics exports have moved up a ladder and have taken a third spot among India's top exports, displacing organic and inorganic chemicals.

This new expansion has also led the Government of India to take on new ambitions. Now, the government aims to boost electronics exports to $200-225 billion by 2029-30. Moreover, to achieve this goal, a compound growth rate of 38-40% is required over the next six years.

Apple at Play

To lead this exponential growth, three major Apple Inc. vendors in India are responsible. Foxconn, Tata, and Pegatron have collectively contributed $5 billion to mobile device exports. This also represents 67% of the total value. This substantial growth has propelled Apple's contribution to electronics exports to new heights. In 2022-23, the company exported $5 billion worth of phones, representing 22% of total electronics exports. This figure doubled to $10 billion in 2023-24, accounting for 35% of total electronics exports.

The Niti Aayog Formula

Electronics exports have moved up to the third spot among India's top exports. The sector now ranks behind only engineering goods and petroleum products. While engineering goods exports rose by 4.2% in the first five months, petroleum product exports fell by 9.8%. The government's focus on electronics exports is now pronounced, with NITI Aayog launching exports to reach $200-225 billion by 2029-30.

Expert Insight

To achieve this exponential growth rate, deep reforms in taxation, tariffs, and production-linked incentive support are necessary, say experts.

Government's Plan Ahead

However, India's electronics export growth is a major player in showcasing a positive sign for the country's economy. With Apple's vendors leading the play, the electronics sector is set for growth amidst more competition from other companies. Also, as the government continues to bet big on electronics, the sector's potential to drive economic growth and job creation is undeniable.