In fact, electronics is the only sector to record growth in the top five categories of exports.
As per experts, at this rate, electronics is likely to emerge as the third largest category of exports in the coming quarters as its gap with the current gems and jewellery segment is narrowing fast. Electronics have overtaken chemicals and drugs and pharmaceuticals to jump from sixth largest exports category to become the fourth largest in Q1 FY24.
As per the data, the electronics category has closed the gap considerably with gems and jewellery exports, which was ahead in FYQ1 by a Rs 4,660 crore. A year ago, the gap was more than 9 times, with gems and jewellery exports being ahead by Rs 42,449 crore.
As per experts, at the current rate, unless the gems and jewellery segment see major growth in the next three quarters, electronics is likely to emerge as the country’s third largest exporter, behind engineering goods and petroleum products by the end of FY 2023-24.
The surge in electronics exports is led by mobile phones exports, which have shown tremendous growth following the government’s announcement of the production-linked incentive (PLI) scheme in 2020.
Mobile phones have been the single largest contributor to the growth in electronics exports in the last 15 months. At Rs 30,000 crore in Q1 of the current fiscal, mobile phones exports contributed 52% of the total electronics exports from the country. A year ago, it contributed 38%.
In mobile phones, Apple’s iPhones are ranked as the single largest, constituting 35% of all electronics exports and 66% of total mobile exports in FYQ1. Currently, Apple’s iPhone models 12, 13 and 14 are exported from India, which are 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 Rs 20,000 crore, or roughly half of what it had achieved in all of FY23 and a surge of around 400% on year. Its three contract makers—Foxconn Hon Hai, Wistron and Pegatron—have committed exports of Rs 61,000 crore in FY24 or the third year of the production-linked incentive (PLI) scheme for mobile phones.
The government has been launching various schemes to boost production of electronics over the last few years. In May 2017, the government announced the phased manufacturing programme to promote local production of mobile handsets. This was followed by PLI schemes for smartphones, IT hardware as well as schemes to support manufacturing of electronics components etc.
