Key Takeaways
- India’s electronics exports surged 42% to $22.2 billion in H1 FY26
- Apple’s iPhone manufacturing drives 45% of total electronics exports
- Electronics could overtake petroleum as India’s #2 export by FY28
India’s electronics industry is on track to become the nation’s second-largest export category within two years, potentially displacing petroleum products. Driven primarily by Apple’s iPhone manufacturing boom, electronics has become India’s fastest-growing export sector according to commerce ministry data.
The government’s Production-Linked Incentive (PLI) scheme has successfully attracted global manufacturers seeking to diversify supply chains away from China amid ongoing geopolitical shifts.
Electronics Export Meteoric Rise
The growth trajectory of electronics exports is remarkable. From ranking 7th in FY22, the sector has climbed to 3rd position by FY25, overtaking established industries like gems and jewellery, chemicals, and pharmaceuticals.
In the first half of FY26, electronics exports reached $22.2 billion – a 42% year-on-year increase. Over three years, exports have jumped 63% from $23.5 billion in FY23 to $38.5 billion in FY25.
Apple’s iPhone Manufacturing Dominance
Apple has emerged as the standout contributor to India’s electronics export success. The company has established India as its second-most important manufacturing base after China.
In H1 FY26, Apple shipped iPhones worth a record $10 billion from India. This represents over 75% of total smartphone exports and 45% of all electronics exports during this period.
Globally, more than one-fifth of iPhones sold now originate from Indian manufacturing facilities.
Petroleum Exports Decline
While engineering products remain India’s top export at $59.3 billion, petroleum products face significant challenges. Petroleum exports declined 16.4% to $30.6 billion in H1 FY26.
The gap between electronics and petroleum has narrowed dramatically from $73.9 billion at the PLI scheme’s inception to approximately $16 billion in H1 FY26.
Industry experts project that if current trends continue, electronics will surpass petroleum to become India’s second-largest export category by FY28, marking a significant shift in the country’s export landscape.
