Driven by mobile devices and Apple Inc’s iPhone vendors, electronics exports grew by 21.8 per cent between April and August in 2024-25 (FY25) compared to the same period last year, reaching $13.57 billion. This made electronics the fastest-growing commodity among the top 10 merchandise exports from the country.
The importance of electronics exports is underlined by the fact that overall exports of the top 10 commodities grew by only 1 per cent during the first five months of FY25, totaling $145.87 billion.
This remarkable growth is largely attributed to a single product: mobile devices. Mobile device exports were valued at $7.56 billion between April and August this financial year, accounting for 55.7 per cent of total electronics exports.
A prime mover in this growth is the role of one company — Apple Inc, headquartered in Cupertino — and its three vendors in India: Foxconn, Tata, and Pegatron. Collectively, these vendors contributed 67 per cent (or $5 billion) of total mobile device exports in the first five months of FY25. They also comprised 37 per cent of total electronics exports during this period.
Apple’s contribution to electronics exports has grown steadily over the years. In 2022-23, the company exported $5 billion worth of phones, representing 22 per cent of total electronics exports. In 2023-24, that figure doubled to $10 billion, accounting for 35 per cent of total electronics exports.
Electronics exports have already moved up to the third spot among India’s top exports in the first five months of the current financial year, displacing organic and inorganic chemicals, which held the position during the same period last year. Now, electronics rank behind only engineering goods and petroleum products. While engineering goods exports rose by 4.2 per cent in the first five months, petroleum product exports fell by 9.8 per cent.
The government is clearly placing a major bet on electronics, with NITI Aayog projecting that with the right reforms and support, exports could reach between $200 billion and $225 billion by 2029-30. However, this would require a compound annual growth rate of 38-40 per cent over the next six years — a target many believe is overly ambitious unless the government introduces deep reforms in taxation, and tariffs, and expands production-linked incentive support.
First Published: Sep 19, 2024 | 12:11 AM IST
