India’s electronics exports have surged 42% year-on-year to US$22.2 billion in the first half of FY26, positioning the sector to soon overtake petroleum as India’s second-largest export after engineering goods. Driven by Apple’s US$10 billion iPhone exports and the success of the Production Linked Incentive (PLI) scheme, electronics have rapidly climbed India’s export rankings, growing 63% in three years. Once reliant on imports, India is currently the world’s second-largest mobile manufacturer, producing over 330 million devices annually. This transformation reflects India’s shift toward a high-tech, self-reliant economy and a rising global hub for electronics manufacturing.
India’s electronics exports are rapidly ascending the global trade ladder and could soon overtake petroleum products as the country’s second-largest export category, after engineering goods. According to Commerce Ministry data, India’s electronics exports rose sharply by 42% year-on-year in the first half of FY26, reaching US$22.2 billion compared to US$15.6 billion a year earlier, making the segment the country’s fastest-growing among 30 export categories. Nearly half of this value — about US$10 billion — comes from Apple’s iPhone shipments, underlining the growing role of high-end smartphone manufacturing in India’s export basket.
In contrast, petroleum product exports have been on a steady decline, dropping 16.4% to US$30.6 billion in the first six months of FY26 from US$36.6 billion a year earlier. Engineering goods, the top export category, grew moderately by 5.35% to US$59.3 billion from US$56.3 billion. The declining trend in petroleum exports is linked to tightening US pressure on Indian refiners to curb imports of discounted Russian crude, which previously gave Indian refiners a significant cost advantage. With this edge eroding, experts predict that petroleum exports could fall further, accelerating electronics’ rise to the second spot by FY28.
The shift marks a major structural transformation in India’s export composition. Electronics, ranked seventh in FY22, climbed to fourth in FY24 and then to third in FY25, surpassing traditional leaders such as gems and jewellery, chemicals, pharmaceuticals, and readymade garments. In just three years, electronics exports have grown an impressive 63%, from US$23.5 billion in FY23 to US$38.5 billion in FY25. Analysts estimate that if the current momentum continues, India’s electronics exports could double between FY23 and FY26.
The narrowing gap between petroleum and electronics exports illustrates the changing dynamics of India’s trade profile. When the government launched the production-linked incentive (PLI) scheme in 2020, the gap between the two sectors stood at nearly US$74 billion. By FY25, it had shrunk to US$24.7 billion, and experts forecast it will reduce further to around US$16 billion in FY26. Although petroleum products are likely to retain the second position for now, the trajectory suggests that electronics could surpass them within the next two to three years, provided global oil trade restrictions persist.
The smartphone PLI scheme has been the primary driver of this growth. Global majors such as Apple and Samsung, along with Indian contract manufacturers like Dixon Technologies, have leveraged government incentives to expand production and exports. Apple’s growing integration into India’s manufacturing ecosystem has been particularly transformative. The company has established India as its second major global base after China for iPhone manufacturing. Made-in-India iPhones now account for over 20% of Apple’s global shipments. In the first half of FY26 alone, Apple exported iPhones worth US$10 billion, representing about 75% of total smartphone exports and 45% of all electronics exports from India.
Experts note that India’s trajectory mirrors China’s earlier success in making electronics its top export category. The current geopolitical realignments, coupled with global efforts to diversify supply chains away from China, are presenting India with a historic opportunity to establish itself as a competitive global electronics hub. If sustained, this transformation could redefine India’s export structure and position electronics as a cornerstone of its external trade growth by FY28.
India’s mobile revolution, which began on 31st July 1995 with the country’s first-ever mobile call, has evolved into a powerful story of digital empowerment and economic transformation. What started as a communication milestone has become a defining force shaping how 1.4 billion Indians connect, learn, and earn. Driven by affordable data and widespread access, India’s telecom revolution has deeply influenced everyday life, turning mobile phones into essential tools for finance, education, entertainment, and enterprise.
With 85.5% of households now owning at least one smartphone, mobile connectivity has become a social and economic equaliser. In rural India, farmers rely on digital tools such as the Digital Crop Survey, Kisan Portal, and National Pest Surveillance System (NPSS) to make data-driven decisions about weather, crops, and prices. According to the Comprehensive Modular Survey: Telecom (Jan–Mar 2025), 96.8% of rural youth and 97.6% of urban youth use mobile phones for communication and internet access, underscoring their central role in everyday life.
A decade ago, India was largely dependent on imported mobile phones. Today, it has emerged as the world’s second-largest mobile manufacturing hub, producing hundreds of millions of devices annually. In 2014, India had just two mobile manufacturing units; now, there are over 300. This rapid expansion has been driven by flagship government programmes like Make in India and the Production Linked Incentive (PLI) scheme, which have boosted domestic production, attracted global investors, and accelerated India’s digital transformation. The country now ranks as the third most digitalised economy in terms of overall digitalisation and twelfth among G20 nations for individual digital usage. Its digital economy is projected to grow nearly twice as fast as the overall economy, contributing one-fifth of national income by 2029–30.
The electronics sector has been central to this transformation. Once a minor contributor, it now represents one of India’s fastest-growing industries, overtaking traditional export sectors like textiles and gems and jewellery. Smartphones, in particular, have driven this growth, creating over 12 lakh jobs in the past decade. Total electronics production has risen from ₹1.9 lakh crore in 2014–15 to ₹11.3 lakh crore in 2024–25, while mobile phone output has surged from ₹18,000 crore to ₹5.45 lakh crore—a 28-fold increase.
India’s smartphone market captures both affordability and aspiration. Demand remains strong across all price segments—from budget phones to premium models. The premium category grew by 26% year-on-year, while 5G devices made up 82% of total shipments last year, highlighting India’s rapid technological adoption. Expanding digital infrastructure, along with a tech-savvy population, has turned India into an attractive destination for both domestic and global manufacturers.
Mobile manufacturing is also a key driver of India’s broader economic ambitions. As the country targets a US$7 trillion GDP by 2030, digital and manufacturing sectors are expected to play leading roles. Under the Make in India and PLI schemes, industries like electronics, electric vehicles, and defence are being scaled up to boost self-reliance and job creation. Currently, India produces over 330 million mobile phones annually, with nearly one billion in active use. Tamil Nadu has emerged as a key production hub, housing more than 47 units supported by the Ministry of Electronics and Information Technology (MeitY).
The export story has been equally impressive. Mobile phones are now India’s fourth-largest export item. In 2014–15, India imported 75% of its mobile phones; currently, import dependence is just 0.02%. This shift began with the 2017 Phased Manufacturing Programme and accelerated after the 2020 PLI scheme, making India a net exporter. Mobile exports have grown 127-fold—from ₹1,500 crore in FY2014–15 to ₹2,00,000 crore in FY2024–25.
Apple has led this charge, exporting ₹1.1 lakh crore worth of iPhones in 2024, up 42% year-on-year. In the first five months of FY2025–26 alone, smartphone exports crossed ₹1 lakh crore—a 55% increase. India even overtook China in smartphone exports to the US in the second quarter of 2025.
Globally, while China and Vietnam remain dominant electronics exporters, India is rapidly catching up, benefitting from the “China+1” strategy that encourages global firms to diversify supply chains. According to the International Trade Centre, in 2023–24, while China’s mobile exports fell by US$3.8 billion and Vietnam’s by US$5.6 billion, India’s rose by US$4.5 billion—capturing nearly half of the combined loss.
With its digital economy projected to expand twice as fast as the overall economy and contribute nearly 20% of GDP by 2029–30, India aims to achieve US$300 billion in electronics production by 2026 and US$1 trillion in total exports by FY2025–26. The country’s journey from being a mobile importer to the world’s second-largest mobile manufacturer is a testament to visionary policymaking, innovation, and the spirit of Atmanirbhar Bharat—a self-reliant India building for itself and the world.
Read more:
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