Electronics exports up by 56% in June quarter of FY24: Commerce Ministry

Mobile phones have been the primary contributor to the growth in electronics exports over the past 15 months

July 24, 2023

In the April-June period of FY23, electronics exports reached INR 36,533.18 crore

Apple's iPhones hold the dominant position, constituting 35% of all electronics exports and 66% of total mobile exports in Q1 FY24

To bolster electronics production, the government has launched various schemes over the past few years

At this pace, electronics is likely to surpass the current gems and jewellery segment and become the third-largest category of exports in the forthcoming quarters

India’s electronics exports surged by over 56% in the April-June period of FY24, reaching INR 57,220.24 crore compared to INR 36,533.18 crore in the corresponding period of the previous year, according to data from the Ministry of Commerce.

The surge in electronics exports is predominantly driven by mobile phone exports, which have witnessed growth following the government’s implementation of the production-linked incentive (PLI) scheme in 2020. Mobile phones have been the primary contributor to the increase in electronics exports over the past 15 months, with mobile phone exports accounting for 52% of the total electronics exports from the country in Q1 of the current fiscal year, compared to 38% a year ago.

Among mobile phone exports, Apple’s iPhones are dominant, constituting 35% of all electronics exports and 66% of total mobile exports in Q1 FY24. Apple’s iPhone models 12, 13, and 14 are currently exported from India, manufactured by its three vendors – Foxconn Hon Hai, Wistron, and Pegatron – as part of the smartphone PLI scheme.

In the June quarter, Apple’s iPhone exports from India crossed INR 20,000 crore, approximately half of its total exports in FY23, indicating a staggering surge of around 400% year-on-year. Its three contract manufacturers, namely Foxconn Hon Hai, Wistron, and Pegatron, have committed to exports of INR 61,000 crore in FY24, which marks the third year of the production-linked incentive (PLI) scheme for mobile phones.

To bolster electronics production, the government has launched various schemes over the past few years, including the phased manufacturing program for promoting local production of mobile handsets in May 2017 and PLI schemes for smartphones, IT hardware, and electronics components manufacturing.

Industry experts predict that at this pace, electronics will likely surpass the current gems and jewellery segment and become the third-largest category of exports in the forthcoming quarters. Electronics has already overtaken chemicals, drugs, and pharmaceuticals, progressing from the sixth to the fourth largest export category in Q1 FY24.

The gap between electronics and gems and jewellery exports has considerably narrowed, with the former trailing only INR 4,660 crore in FYQ1. This is a significant change from a year ago, when the gap was more than nine times higher, with gems and jewellery exports leading by INR 42,449 crore.

Source: Economic Times

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