Mobile Devices Drive 21.8% Growth Amidst Global Challenges

India’s electronics exports have witnessed an impressive 21.8% increase between April and August 2024, reaching $13.57 billion. This makes electronics the fastest-growing sector among the country’s top merchandise exports, highlighting the vital role of mobile devices and key players like Apple Inc.

Mobile Devices Take Center Stage in Export Growth

The phenomenal growth in electronics exports is largely fueled by mobile devices, which accounted for $7.56 billion—55.7% of total electronics exports. This surge underscores the significance of mobile technology in the Indian export landscape.

Apple and Its Vendors: The Powerhouse Behind the Numbers

Central to this growth are Apple Inc. and its three Indian vendors: Foxconn, Tata, and Pegatron. Together, they contributed a staggering 67% ($5 billion) of mobile device exports in the first five months of FY25, making them critical players in the electronics sector. Apple’s share of electronics exports has risen dramatically, from $5 billion in 2022-23 to $10 billion in 2023-24.

Electronics Ascend in National Export Rankings

With this growth, electronics have climbed to the third spot among India’s top exports, surpassing organic and inorganic chemicals. Now, they trail only behind engineering goods and petroleum products, marking a significant shift in the country’s export dynamics.

Future Prospects: Ambitious Goals Ahead

Looking forward, the government is banking on the electronics sector to bolster the economy. NITI Aayog projects that with the right reforms, exports could soar to between $200 billion and $225 billion by 2029-30. However, achieving this ambitious target requires a compound annual growth rate of 38-40%, prompting calls for substantial reforms in taxation, tariffs, and production incentives.

As India positions itself as a global technology leader, the trajectory of its electronics exports is one to watch closely in the coming years.