New Delhi: A growth of 27.7% in India’s electronics exports has been revealed by data from both the government and the industry, reaching $15.48 billion during the April-October period of the current fiscal year, marking an increase from the $12.1 billion recorded in the same timeframe last fiscal year.
The data indicated that of the $3.4 billion year-on-year rise in electronics exports, $3 billion, or 88%, is attributed to the surge in mobile phone exports. Notably, iPhone shipments emerged as the primary contributor, accounting for $5 billion, constituting a third of India’s total electronics exports.
Industry sources reported an overall 60% increase in mobile phone exports, soaring to $8 billion during the seven-month period, compared to $4.97 billion in the previous year. Impressively, iPhone exports alone already matched the export figures for the entire fiscal year 2022-23.
Communications and IT Minister Ashwini Vaishnaw revealed the government’s commitment to fostering export-led growth for smartphones and electronics to media outlets.
Vaishnaw highlighted the collaborative efforts between the Ministry of Electronics and IT (MeitY) and the Ministry of Finance to streamline the movement of goods across borders. Addressing concerns such as import duties, processes, automation, and warehousing, he emphasised India’s transition into the global value chain for mobile phones and electronics.
Vaishnaw underscored India’s integration into the global value chain of mobile phones and electronics and said that the nation is shifting towards export-led growth, moving away from a focus on import substitution and addressing the nation’s growing needs.
During the April-October period, electronics emerged as the fastest-growing among India’s top 10 export sectors, surpassing drugs and pharmaceuticals, which grew at 8.14%, and cotton yarn/fabs/made-ups at 5.65%.
The surge in mobile phone exports is attributed to the success of the production-linked incentive scheme, attracting global giants like Apple, Samsung, and Bharat FIH (Foxconn), along with Indian brands.
The Directorate General of Foreign Trade identified electronics, renewable energy, IT hardware, and electric vehicles as pivotal to India’s ambitious $1-trillion export target by 2030.
Notably, electronics exports have jumped from the 11th position a few years ago to the sixth place in the current year.
The sector has significantly narrowed the gap with the fourth and fifth-placed exports, with drugs and pharmaceuticals leading by only $300 million. Similarly, the lead of organic and inorganic chemicals over electronics has shrunk from nearly $4 billion to just $200 million in the current fiscal year.
Current trends suggest that electronics exports are poised to secure either the fourth or fifth position by the end of fiscal year 2023-24. In the previous fiscal year, electronics exports reached $23.55 billion, registering an impressive 62% increase from $11.6 billion in fiscal year 2022.
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