Electronics Sector Surges as India's Leading Export Category
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New Delhi, Dec 26 (NationPress) Electronics goods have positioned themselves as the fastest-growing segment in India's export landscape, propelled by new manufacturing capabilities established in the country due to the successful implementation of the Centre's production-linked incentive (PLI) scheme.
The country's electronic exports soared by an impressive 27.4 percent to $22.5 billion during the period of April-November 2024-25, compared to $17.66 billion in the same timeframe of 2023-24.
In the realm of electronics, this sector has ascended to the third position among the top contributors to India's export economy, trailing only engineering products and petroleum, up from the sixth position last year.
Within the electronics category, smartphone exports have experienced a remarkable 45 percent growth as industry leaders like Apple and Samsung ramp up production in India. The PLI scheme, coupled with expedited government approvals, has become a significant success as international corporations seek alternatives to China for their supply chains.
Apple's establishment in India, alongside its partners Foxconn, Pegatron, and Tata Electronics, has significantly bolstered smartphone exports this year. Additionally, exports of consumer electronics, solar modules, desktops, and routers have also seen substantial growth.
According to a senior official, electronics exports are anticipated to accelerate further as semiconductor manufacturing facilities are being developed in the country.
The Union Cabinet recently greenlit a proposal from Kaynes Semicon to construct a semiconductor unit in Sanand, Gujarat, with a financial commitment of Rs 3,307 crore. This marks the fifth semiconductor facility approved under the India Semiconductor Mission (ISM), and the second in Sanand, bringing the total investment to Rs 1,52,307 crore ($18.15 billion).
The government initiated the ISM and the display manufacturing ecosystem with a financial outlay of Rs 76,000 crore in December 2021. Minister for Electronics Ashwani Vaishnaw has emphasized that the semiconductor industry is a foundational industry for achieving India's domestic manufacturing objectives.
As of March 2024, electronics manufacturing in India has surpassed the $100 billion mark, a significant increase from $49 billion in 2017, reflecting the rapid growth of the industry, as noted by a senior official.
