New Delhi: According to the India Cellular and Electronics Association (ICEA), electronic exports from India to the United States experienced more than double year-on-year increase, reaching a record $6.6 billion between January and September 2023.
Pankaj Mahindroo, Chairman of ICEA, declared this to be an all-time high for India’s electronics exports. A decline in the share of electronics imported from China into the US market was also noted.
Recent data from ICEA reveals a 253% increase in India’s electronics exports to the US, rising from an estimated $2.6 billion in the same period last year to the current $6.6 billion. The growth trend has been consistent, with India’s electronics exports to the US surging over 300%, from an estimated $1.3 billion in 2018 to $4.5 billion in 2022.
The bilateral electronics trade between India and the US has witnessed an 84% rise, standing at $9 billion during January-September 2023, compared to an estimated $4.9 billion in the corresponding period of the previous fiscal year.
In August 2023, ICEA initiated the Indo-US Task Force for Electronics with the ambitious goal of elevating bilateral electronics trade from $8.4 billion in the last fiscal to $100 billion in a decade.
RS Sharma, Chairman of the Indo-US Task Force on Electronics, expressed optimism about significantly enhancing India’s position in the US electronics market, particularly in the promising area of smartphone exports, anticipating a potential 5x growth in the next 3-5 years.
The share of electronics imports from China into the US has seen a notable decline, dropping from an estimated 46% in 2018 to 24% in January-September 2023. The ‘Trump Tariffs’ imposed in 2018 on many Chinese goods played a role in this shift.
Meanwhile, Vietnam and Taiwan experienced substantial growth in their electronics exports to the US, with a 420% increase for Vietnam and 239% for Taiwan from 2018 to 2022.
Mahindroo emphasised that the surge in India’s electronics exports underscores the country’s potential in the global electronics market, with smartphones identified as an up-and-coming sector poised for a fivefold increase in the next 3-5 years.
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