Business

Electronics Exports From India To Surpass ₹3 Lakh Crore In FY25

In a significant milestone for India’s manufacturing sector, the country’s electronics exports are on track to exceed ₹3 lakh crore for the first time in the current fiscal year (FY25), primarily driven by a surge in smartphone exports.

India’s electronics exports have shown impressive growth, reaching ₹2.87 lakh crore in the first 11 months of FY25 (April-February), marking a 35% increase from ₹2.11 lakh crore during the same period last fiscal year (FY24).

This growth highlights the sector’s robust performance and underscores India’s increasing strength in global electronics manufacturing.

Smartphones Lead The Charge

Smartphones continue to dominate the growth of India’s electronics exports, accounting for ₹1.75 lakh crore, or 54% of the total export growth in the April-February period. This marks a 54% jump compared to the same period in FY24.

Apple’s iPhone exports have been a major contributor, reaching ₹1.25 lakh crore, which accounts for 43% of total electronics exports and 70% of smartphone exports.

Apple’s iPhone exports alone have exceeded expectations.

The government had initially projected smartphone exports to reach $20 billion (₹1.68 lakh crore) in FY25, but the figures for the first 11 months have already surpassed this target, according to the India Cellular and Electronics Association (ICEA).

PLI Scheme Boosts Electronic Exports

The surge in electronics exports is largely attributed to the government’s Production-Linked Incentive (PLI) scheme, which has successfully attracted foreign tech giants, including Apple, to set up production facilities in India.

The PLI scheme aims to incentivize domestic manufacturing and has led to significant increases in both exports and domestic production, which now meets 99% of domestic demand.

Apple’s iPhone supply chain has been a key driver of India’s electronics exports.

Approximately 70% of the smartphone exports were contributed by Apple’s suppliers, with Foxconn’s Tamil Nadu-based plant accounting for nearly 50% of the total overseas shipments.

Exports from the Foxconn facility saw a remarkable 40% increase compared to the same period last year.

Other Major Contributors

In addition to Foxconn, Tata Electronics, which acquired Wistron’s smartphone manufacturing facility in Karnataka, contributed 22% of total smartphone exports. Furthermore, Pegatron’s Tamil Nadu-based plant, where Tata Electronics holds a 60% stake, accounted for 12% of exports.

The Tata Group has emerged as a significant producer of iPhones in India, following these acquisitions.

South Korean tech giant Samsung also contributed around 20% of the total smartphone exports from India.

PLI Schemes And Job Creation

The government’s PLI schemes have attracted ₹1.61 lakh crore in investments and resulted in ₹14 lakh crore in production, ₹5.31 lakh crore in exports, and the creation of 11.5 lakh jobs.

These initiatives have been pivotal in strengthening India’s position in the global electronics supply chain and reducing reliance on imports.

India’s electronics export sector, driven by smartphones, has seen remarkable growth, with the PLI scheme playing a crucial role in this success.

The country’s goal of surpassing ₹3 lakh crore in electronics exports by FY25 reflects the continued growth and strengthening of its manufacturing capabilities, positioning India as a key player in the global electronics market.

Also Read: Sensex Opens Strong Above 78,000 Amid Positive Global Cues

Purnima Mishra

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