India has witnessed a notable escalation in its electronics exports, particularly during the fiscal year 2024. This surge has been predominantly influenced by major corporations such as Apple and is further supported by the rising domestic demand for smartphones.
Production and Exports Increase
In FY24, Apple’s contribution was particularly significant, with the company assembling iPhones worth approximately $14 billion in India. This accounted for 14% of Apple’s total global iPhone production. Additionally, companies like Foxconn have initiated the manufacturing of Apple mobile phones in regions such as Karnataka and Tamil Nadu, reflecting a robust expansion in local production capabilities.
Impact of Trade Dynamics and Policies
The Economic Survey highlights that although India has not immediately benefited from the shift in trade away from China, the long-term growth in electronics exports has been impressive. This is largely attributed to the government’s Production Linked Incentive (PLI) scheme, which has catalyzed the sector’s expansion.
Trade Balances and Export Categories
From a trade deficit of $0.6 billion in FY17, India’s electronic exports to the US have remarkably transformed into a trade surplus of $8.7 billion by FY24. Within this sector, mobile phones have emerged as the fastest-growing category, with exports to the US jumping from $2.2 billion in FY23 to $5.7 billion in FY24.
Global Standing
From holding a 0.63% share in world electronics exports in 2018, India’s share increased to 0.88% by 2022. This improvement has elevated India’s ranking from 28th to 24th globally within this period, as per the survey.
Sector Growth and Employment
The electronics manufacturing sector in India has not only seen growth in output but has also significantly contributed to employment, especially for women, who are valued for their productivity and dexterity in assembly operations. Since 2014, the sector has grown to represent an estimated 3.7% of the global market share by FY22, and accounted for 4% of India’s GDP in the same fiscal year.
Investment and Manufacturing Expansion
Over the past five years, India has become increasingly attractive for investments in the electronics sector. This has been facilitated by the establishment of substantial manufacturing capacities. Numerous well-known brands have either set up their manufacturing units or partnered with local Electronics Manufacturing Services companies to leverage the burgeoning Indian market.
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