India’s Electronics Exports Cross a Historic Milestone in 2025

India’s electronics sector achieved a landmark breakthrough in 2025 as exports crossed $47 billion, marking one of the fastest growth phases in the country’s manufacturing history. This surge represents a year-on-year growth of nearly 37 percent, elevating electronics into one of India’s most significant export categories. What was once a largely import-dependent sector has now emerged as a key driver of India’s global trade presence, reflecting a deeper structural shift in manufacturing capability and global integration.

The figures underscore Tamil Nadu’s expanding role in the global electronics supply chain, as both state and national policymakers work to position India as a competitive alternative to China in manufacturing.(Express Illustrations) | New Indian Express

Smartphones Drive Export Momentum

At the heart of this export boom lies the rapid expansion of smartphone manufacturing, particularly the production of Apple’s iPhones in India. In 2025 alone, India exported approximately $22 billion worth of iPhones, accounting for nearly half of the country’s total electronics exports. This also represents close to three-quarters of all smartphone exports from India, underscoring the pivotal role played by global technology firms that have relocated or expanded manufacturing operations in the country.

India’s growing role in Apple’s global supply chain has significantly reshaped export patterns. Several months during the year recorded electronics exports exceeding $4 billion, highlighting the consistency and scale of demand for Indian-manufactured devices across international markets, especially in the United States and Europe.

A Broadening Electronics Export Base

While smartphones dominated the headlines, India’s electronics export basket has expanded beyond mobile devices. Products such as photovoltaic cells used in solar energy systems, networking equipment including routers, charger adapters, and a wide range of electronic components and sub-assemblies contributed meaningfully to overall export growth. This diversification reflects India’s gradual move up the value chain, from final assembly to component manufacturing, an essential step for long-term sustainability in electronics exports.

The growing presence of Indian-made components in global supply chains also signals increasing confidence in domestic manufacturing standards, logistics efficiency, and regulatory stability.

Policy Reforms and Incentives Fuel Growth

The rapid rise in electronics exports has been strongly supported by targeted government interventions. The Production-Linked Incentive (PLI) scheme, introduced in 2020 for smartphones and later expanded to other electronics segments, has played a crucial role in attracting global manufacturers and scaling domestic production. By linking incentives directly to output and exports, the scheme has encouraged companies to increase capacity while improving competitiveness.

In 2025, the government further strengthened the ecosystem with the launch of the Electronics Component Manufacturing Scheme (ECMS), backed by an outlay of nearly ₹22,919 crore. The initiative aims to reduce import dependence in critical components, attract large-scale investment, and generate substantial employment across the electronics supply chain. Together, these policy measures have helped transform India from an assembly hub into an emerging electronics manufacturing powerhouse.

Regional Manufacturing Hubs Power Exports

India’s electronics export growth has been driven by strong regional manufacturing clusters. States such as Tamil Nadu and Karnataka have emerged as major export hubs, supported by robust industrial infrastructure, skilled labour, and proactive state-level policies. Tamil Nadu alone accounted for over $14 billion in electronics exports in FY 2024-25, reflecting the concentration of large smartphone and component manufacturing facilities in the state.

These regional hubs have not only boosted exports but have also contributed to job creation, technology transfer, and the development of local supplier networks.

The Road Ahead for Electronics Exports

Looking forward, industry estimates suggest that India’s electronics exports could cross $55 billion in 2026 if current momentum continues. However, sustaining this growth will require the extension of key incentive schemes beyond their current timelines, stable global trade conditions, and continued progress in semiconductor and high-value component manufacturing. Global uncertainties, including tariff policies and supply-chain disruptions, remain factors that could influence export performance.

The MGMM Outlook

India’s electronics exports crossing $47 billion in 2025 reflects a structural transformation rather than a short-term surge. The rapid scale-up of smartphone manufacturing, led by iPhone production, has firmly integrated India into global technology supply chains, with consistent monthly export volumes demonstrating reliability and scale. At the same time, the expansion beyond smartphones into components, solar equipment, and networking hardware signals a gradual but important shift up the value chain. This evolution highlights growing confidence in India’s manufacturing standards, logistics, and regulatory environment, moving the sector away from import dependence toward global competitiveness.

This momentum has been underpinned by focused policy interventions such as the PLI scheme and the Electronics Component Manufacturing Scheme, which have incentivized capacity expansion, localized component production, and employment generation. Strong regional hubs in states like Tamil Nadu and Karnataka have amplified these gains by combining infrastructure, skilled labour, and supportive state policies. Together, these factors position electronics as a durable pillar of India’s export growth, with the potential to sustain higher volumes in the coming years if policy continuity and ecosystem development remain on track.

(Sources: Business Standard, New Indian Express, Economic Times)