India's Electronics Exports Experience Unprecedented Growth in December

Synopsis

India's electronics exports surged by 35.1% to $3.58 billion in December 2024, reflecting heightened global demand for Indian goods and increased domestic production. This growth underscores the success of India's production-linked incentive scheme, propelling the electronics sector to new heights.

Key Takeaways

Electronics exports reached a record $3.58 billion in December 2024.
Growth driven by foreign demand and domestic production.
Smartphone exports increased by 45% in recent months.
Semiconductor manufacturing is expanding in India.
Electronics manufacturing surpassed $100 billion in 2024.

New Delhi, Jan 16 (NationPress) India's electronics exports have experienced a remarkable increase of 35.1 percent, reaching a two-year record of $3.58 billion in December 2024, up from $2.65 billion in the same month last year. This growth indicates a rise in foreign demand for high-value Indian products and the enhancement of domestic production capabilities, as reported by the Commerce Ministry.

Commerce Secretary Sunil Barthwal stated, "In December 2024, electronic goods exports have achieved the highest level in the past 24 months."

Electronics have emerged as the fastest-growing segment within India's export portfolio, bolstered by the successful implementation of the Centre's production-linked incentive (PLI) scheme, which has stimulated new manufacturing abilities in the country.

During the period from April to November 2024-25, India's electronic exports surged by a significant 27.4 percent to $22.5 billion, compared to $17.66 billion during the same timeframe in 2023-24.

The sector has consistently expanded over the past two years, with electronic exports to the US doubling year-on-year to $6.6 billion between January and September 2023, according to the industry body India Cellular and Electronics Association (ICEA).

Electronics have now risen to the third position among the top performers in India's export landscape, following engineering products and petroleum, a significant improvement from the sixth position last year.

Within the electronics sector, smartphone exports have achieved a 45 percent rise, driven by major players like Apple and Samsung who are expanding their production in India. The PLI scheme and expedited government approvals are proving successful as global companies seek alternatives to China for their supply chains.

Apple's establishment in India, supported by its partners Foxconn, Pegatron, and Tata Electronics, has significantly boosted smartphone exports this year. Notable growth has also been seen in the exports of consumer electronics, solar modules, desktops, and routers.

Future growth in electronics exports is anticipated as semiconductor manufacturing capabilities are being developed in the country, according to a senior official.

The Union Cabinet has recently authorized a proposal from Kaynes Semicon to establish a semiconductor facility in Sanand, Gujarat, with an investment of Rs 3,307 crore. This marks the fifth semiconductor unit approved under the India Semiconductor Mission (ISM), and the second in Sanand, contributing to a total investment of Rs 1,52,307 crore ($18.15 billion).

The government initiated the ISM and the display manufacturing ecosystem with a budget of Rs 76,000 crore in December 2021.

Electronics Minister Ashwani Vaishnaw has labeled the semiconductor industry as a "foundational industry" crucial for India's domestic manufacturing aspirations.

By March 2024, electronics manufacturing in India surpassed the $100 billion mark, a significant increase from $49 billion in 2017, highlighting the rapid growth of the industry, as noted by a senior official.