According to the latest data from India’s Ministry of Commerce and the Electronics and Computer Software Export Promotion Council (ESC), India’s electronics exports surged by 42% year-on-year in the first half of 2025, reaching $22.2 billion. Approximately half of this growth stemmed from the assembly and export of Apple iPhones, underscoring India’s rapidly expanding role within global manufacturing supply chains. This expansion reflects a structural shift in the global manufacturing landscape, with an increasing number of multinational corporations diversifying production away from traditional hubs like China. Apple’s primary contract manufacturers—Foxconn, Wistron, and Pegatron—have significantly expanded production capacity in India’s southern states of Tamil Nadu and Karnataka, establishing the country as a major hub for high-end smartphone manufacturing.
Policy Support and Export Growth
The rapid growth in electronics exports is closely tied to the Production-Linked Incentive (PLI) Scheme introduced by the Indian government. This initiative encourages the development of domestic electronics manufacturing through fiscal subsidies and tax incentives, attracting numerous international brands and component suppliers to enter the Indian market.
According to an ESC report, India’s total electronics exports reached $38.57 billion in FY 2024–2025, marking a 32.5% year-on-year increase. Non-smartphone electronics (including components, batteries, and consumer electronics) accounted for over $14 billion of this total. Key export markets included the United States, the United Arab Emirates, the Netherlands, and the United Kingdom, reflecting India’s growing penetration within global supply chains. The Indian government anticipates electronics will become the country’s second-largest export category after petroleum products in the coming years.
Challenges and Growth Outlook
Despite robust export growth, India’s electronics industry still faces multiple challenges. Currently, India remains reliant on imports for critical components, particularly semiconductors, sensors, and high-end display modules. To maintain long-term competitiveness, establishing a complete and self-reliant domestic supply chain will be crucial. Additionally, global trade frictions, tariff policy changes, and competition from Southeast Asia may introduce uncertainties to exports. Analysts note that if India can continue to refine its industrial policies, improve infrastructure, and enhance workforce skills, its electronics manufacturing sector is poised for steady growth in the coming years.
Should current trends persist, electronics exports are expected to surpass traditional strengths like jewelry and gems in the near future, propelling India’s transformation from an “import-driven consumer market” into a major player in high-value-added manufacturing and exports.
