India's exports of electronics are headed for ₹3 lakh crore in FY25, a landmark first for India's manufacturing economy.
Latest statistics for the sector have shown electronics exports at ₹2.87 lakh crore over 11 months through February from April, posting a stunning 35% expansion compared to ₹2.11 lakh crore between April and February last year in FY24.
Smartphones remain at the forefront of this boom, adding ₹1.75 lakh crore to the overall electronics exports during this time—a whopping 54% higher than last year. Apple's iPhone alone has exported ₹1.25 lakh crore worth of products, contributing 43% of overall electronics exports and 70% of smartphone exports.
As per the India Cellular and Electronics Association (ICEA), the government had estimated exports of smartphones at $20 billion (₹1.68 lakh crore) in FY25, which has already been crossed within 11 months.
The sudden growth in electronics exports is propelled by the government's production-linked incentive (PLI) scheme to a great extent. The scheme has been able to bring big international players, such as Apple (NASDAQ:AAPL) and its manufacturers, who are diversifying output from China because of U.S. sanctions.
The PLI scheme has not only increased exports but also reduced imports, with local production now supplying 99% of the nation's demand.
Apple's supply chain has been one of the biggest contributors, with around 70% of total smartphone exports coming from here. Tamil Nadu-based Foxconn (SS:601138) alone contributed around 50% of these shipments with over 40% growth over last year. Tata Electronics, which acquired Wistron's smartphone factory in Karnataka, saw 22% contribution, while the remaining 12% came from Pegatron's Tamil Nadu factory, where Tata Electronics just acquired a 60% stake. Through these acquisitions, Tata is now a large iPhone producer in India. Samsung (KS:005930) also contributed significantly, exporting about 20% of total smartphones.
In total, the PLI scheme has led to ₹1.61 lakh crore of investments, ₹14 lakh crore of production, and ₹5.31 lakh crore of exports with the creation of 11.5 lakh jobs.
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