Driven by Apple Inc.’s mobile devices and iPhone suppliers, electronics exports grew 21.8 percent in April-August of fiscal year 2024-25 (FY25) compared to the same period last year, reaching $13.57 billion. This made electronics the fastest-growing commodity among the country’s top 10 merchandise exports.
The importance of electronics exports is underlined by the fact that total exports of the top 10 products grew by only 1 percent during the first five months of FY25, totaling $145.87 billion.
This remarkable growth is largely attributed to one product: mobile devices. Mobile device exports were worth $7.56 billion between April and August this fiscal year, accounting for 55.7 percent of total electronics exports.
A key driver of this growth is the role of one company — Cupertino-based Apple Inc. — and its three suppliers in India: Foxconn, Tata and Pegatron. Together, these suppliers contributed 67% (or $5 billion) of total mobile device exports in the first five months of fiscal 2025. They also accounted for 37% of total electronics exports during this period.
Apple’s contribution to electronics exports has grown steadily over the years. In 2022-23, the company exported phones worth $5 billion, accounting for 22% of total electronics exports. In 2023-24, that figure doubled to $10 billion, accounting for 35% of total electronics exports.
Exports of electronic products have already moved up to the third position among India’s top exports in the first five months of the current fiscal year, displacing organic and inorganic chemicals, which held that position during the same period last year. Now, electronic products are behind only engineering products and petroleum products. While exports of engineering products rose by 4.2 per cent in the first five months, exports of petroleum products fell by 9.8 per cent.
The government is clearly betting on electronics: NITI Aayog projects that with the right reforms and support, exports could reach $200-225 billion by 2029-30. However, this would require a compound annual growth rate of 38-40% over the next six years – a target seen by many as overly ambitious unless the government introduces deep tax and tariff reforms and expands support for production-linked incentives.
First published: September 19, 2024 | 00:11 IS
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