India's Electronics Exports Reach New Heights, Cross $14 Billion Mark in FY24-25

India's non-smartphone electronics exports have surpassed $14 billion in FY2024-25, contributing to a 32.47% jump in overall electronics exports to $38.57 billion. Solar panels, telecom equipment, medical electronics, batteries, and digital processing units have driven the growth, with photovoltaic cells earning $1.12 billion. Electronics now make up 9% of India's total merchandise exports, up from 6.73% last year. The sector's growth is attributed to production-linked incentives, duty rationalization, skilling programs, and targeted support for small and medium enterprises.

India's non-smartphone electronics exports have surpassed $14 billion in FY2024-25, contributing to a 32.47% jump in overall electronics exports to $38.57 billion. This growth is primarily driven by solar panels, telecom equipment, medical electronics, batteries, and digital processing units, with photovoltaic cells earning $1.12 billion. Electronics now make up 9% of India's total merchandise exports, up from 6.73% last year. The sector's growth is attributed to production-linked incentives, duty rationalization, skilling programs, and targeted support for small and medium enterprises.

The surge in non-smartphone electronics exports underscores the success of India's 'Make in India' initiative, which has seen electronics production grow exponentially over the past decade. According to the Union Commerce and Industry Minister Piyush Goyal, electronics exports have surged over 47% year-on-year in Quarter 1 of 2025-26 [1].

Moreover, the Electronics Component Manufacturing Scheme (ECMS) launched by the government aims to increase domestic value addition in semiconductor components from the current 3-5% to 15-20% in the next 3-5 years [2]. This scheme, along with other policy interventions, has fostered a robust ecosystem for electronics manufacturing in India.

The growth in electronics exports is also a result of strategic diversification efforts. With the U.S. imposing a 50% tariff on Indian goods, India has been actively pursuing free trade agreements and regional trade agreements to mitigate the impact. For instance, the India-UK FTA, finalized in July 2025, is expected to offset U.S. losses by 2026 [3].

In conclusion, India's electronics sector is poised for continued growth, driven by government initiatives, strategic diversification, and a robust manufacturing ecosystem. The sector's resilience and potential for further expansion present attractive opportunities for investors.

References:

[1] https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-electronics-export-surged-47-in-q1-2025-26-piyush-goyal/articleshow/123334023.cms
[2] https://www.business-standard.com/industry/news/govts-electronics-component-manufacturing-scheme-increase-value-addition-semiconductor-125081901386_1.html
[3] https://www.ainvest.com/news/india-manufacturing-sector-trump-50-tariff-threat-assessing-long-term-resilience-diversification-opportunities-investors-2508/