India’s electronics exports surged in FY24, boosted by Apple: Economic Survey.

India’s Electronics Exports on the Rise: Key Insights from Economic Survey 2023-24

The Economic Survey 2023-24 has revealed that India has not only seen a significant increase in its electronic exports over time but has also witnessed a boost in domestic production, thanks to the production-linked incentive (PLI) scheme.

Key Highlights:

• Domestic Production: The domestic production of electronic items in India surged to Rs 8.22 lakh crore, with exports reaching Rs 1.9 lakh crore in FY23.
• Apple’s Contribution: Apple assembled $14 billion worth of iPhones in India during FY24, accounting for 14% of its global iPhone production.
• Export Growth: The share of electronics goods in India’s merchandise exports rose to 6.7% in FY24 from 2.7% in FY19.
• US Trade: India’s electronic exports to the US shifted from a trade deficit of $0.6 billion in FY17 to a trade surplus of $8.7 billion in FY24.

Global Manufacturing Trends:

Major multinational companies, including Apple, are looking to diversify their manufacturing operations away from China, with India emerging as an attractive destination due to its large domestic consumer market.

Government Schemes:

To further bolster the electronics sector and boost exports, the Indian government has introduced schemes like the PLI scheme for large-scale electronics manufacturing, PLI IT Hardware, and others, resulting in a significant increase in production and exports.

Industry Growth and Rankings:

India’s share in world electronics exports has increased from 0.63% in 2018 to 0.88% in 2022, moving up from 28th to 24th in global rankings. The electronics manufacturing sector in India now accounts for approximately 3.7% of the global market share.

Overall, the electronics industry has played a crucial role in contributing to India’s GDP, accounting for 4% in FY22.