India's electronics exports top Rs 2.5 lk cr, thanks to smartphones

India’s electronics exports has become the fastest growing of the country’s top 10 segments and has for the first time breached the Rs 2.5 lakh crore mark in just 10 months of the current fiscal.The exports numbers achieved by the electronics sector till January in the current fiscal have already eclipsed last year’s Rs 2.41 lakh crore, as per analysis of data put out by the commerce ministry.

Smartphone exports, particularly from iPhone maker-Apple, have been the driver of the surge in electronics exports. Smartphones, which is now the dominant category in electronics exports, have increased their contribution to 60% in FY25 from 52% in the last fiscal.

Smartphone exports in the 10 months of this fiscal stood at Rs 1.55 lakh crore-.January has been a record month for smartphone exports with outward shipments to the tune of Rs 25,000 crore ($3 billion), of which iPhones contributed over Rs 16,500 crore ($2 billion). Led by smartphones, electronics exports in the month jumped over 85% to Rs 35,416 crore in the month this year.

Threat of Reciprocal Tariffs

A year ago, electronics exports stood at Rs 19,067.60 crore, according to Ministry data.

Boosted by the surge, the electronics segment is now the third largest contributor of exports, with the category closing in on petroleum exports, which has seen a decline to the tune of 23.66% in the first 10 months of the fiscal.

In contrast, electronics exports have shown a massive jump over the last few years, particularly after the implementation of the production linked incentive (PLI) scheme for smartphones. Following the scheme, Apple started shifting its supply chains to India and made the country a second home for iPhone manufacturing after China.

Electronics exports improved its ranking in the top 10 to become the country’s third largest category by FY24. However, experts say the industry should be cautious about the threat of reciprocal tariffs by the Donald Trump administration. “The industry and government are working together to chart out a roadmap to avert any negative consequences for the sector,” said an industry executive, asking not to be named.

The industry has been demanding rationalisation of tariffs so that India remains competitive visà-vis China and Vietnam.

As per India Cellular and Electronics Association, mobile phone production in India has doubled since the launch of the PLI scheme from Rs 2.20 lakh crore in FY 2020-21 to Rs 4.22 lakh crore in FY 23-24.