Electronics Become Fourth Largest Export Item In June Quarter; Fastest-growing Category

Electronics emerged as the fourth largest exported item from India during the June quarter, climbing two positions and becoming the fastest-growing category among the top 30 exports.  

According to data released by the Ministry of Commerce, electronics exports experienced an impressive growth of over 56 per cent during the April-June period, reaching Rs 57,220.24 crore, compared to Rs 36,533.18 crore in the same period the previous year. 

Notably, electronics is the only sector among the top five export categories that has shown growth. Experts predict that at this rate, electronics is likely to surpass gems and jewellery and become the third largest export category in the upcoming quarters. It has already surpassed chemicals and drugs and pharmaceuticals, moving from the sixth to the fourth largest export category in Q1 FY24. 

The gap between electronics and gems and jewellery exports has significantly narrowed, and if the current trend continues, electronics is expected to become the country's third largest exporter by the end of FY 2023-24, trailing behind engineering goods and petroleum products. 

The remarkable surge in electronics exports is mainly driven by the significant growth in mobile phone exports, especially after the government introduced the production-linked incentive (PLI) scheme in 2020. In the last 15 months, mobile phones have been the primary contributor to the growth in electronics exports, accounting for 52 per cent of total electronics exports in Q1 of the current fiscal year, compared to 38 per cent a year ago. 

Among mobile phone exports, Apple's iPhones hold the top position, constituting 35 per cent of all electronics exports and 66 per cent of total mobile exports in FYQ1. Currently, India exports iPhone models 12, 13, and 14, manufactured by three vendors - Foxconn Hon Hai, Wistron, and Pegatron - as part of the smartphone PLI scheme. 

During the June quarter, Apple's iPhone exports from India crossed Rs 20,000 crore, approximately half of what it achieved in the entire FY23, with a remarkable surge of around 400 per cent compared to the previous year. The three contract manufacturers have committed exports of Rs 61,000 crore in FY24, the third year of the production-linked incentive (PLI) scheme for mobile phones. 

Over the past few years, the government has implemented various schemes to boost electronics production, including the phased manufacturing programme for mobile handsets announced in May 2017, PLI schemes for smartphones and IT hardware, and support for the manufacturing of electronics components.