India’s Electronics Export Boom : A Strategic Shift in Global Trade

India's electronics exports are on a tear. In Q1 FY26 (April–June 2025), outbound shipments jumped a staggering 47% year-on-year, marking one of the strongest quarters ever for the sector. Key markets like the United States, United Arab Emirates, and China are absorbing the bulk of these exports — with mobile phones, consumer electronics, and telecom gear leading the charge.

More than just a trade number, this surge highlights the success of India's Production Linked Incentive (PLI) schemes, the rise of India as a “China+1” alternative, and the deepening role of global giants like Apple and Samsung in the Indian electronics ecosystem.

What’s Fueling the Surge in Electronics Exports ?

1. PLI Schemes Delivering Real Results

The government’s PLI schemes for large-scale electronics and IT hardware have significantly improved the cost structure and scale for Indian manufacturers. Contract manufacturers and Indian firms alike are hitting production and investment thresholds, unlocking subsidies and creating economies of scale.

2. Global “China+1” Strategy Benefits India

As multinational corporations diversify supply chains, India has emerged as a preferred alternative to China, particularly in the smartphone assembly and consumer electronics segments. Vietnam may have led the shift earlier, but India is catching up fast.

3. Apple’s Pivot to India

Apple’s India manufacturing push has gone from symbolic to substantial. The tech giant — via Foxconn, Pegatron, and now Tata Electronics (after acquiring Wistron's Indian unit) — is assembling and exporting iPhones at scale. A large portion of iPhone exports now head to the US and Europe, directly boosting India's outbound shipment numbers.

4. Trade Partnerships and Tariff-Free Access

Bilateral ties, especially with the UAE and US, have supported smoother market access. Tariff-free trade under CEPA (India-UAE Comprehensive Economic Partnership Agreement) has enabled Indian firms to competitively ship electronics and mobile phones to West Asia and beyond.

Top Indian Players Behind the Export Momentum

Apple (via Foxconn, Tata Electronics, Pegatron)

• iPhone exports from India are now a major component of mobile electronics trade.

• Tata’s acquisition of Wistron’s plant added strategic depth and local value addition.

Dixon Technologies

• A key PLI beneficiary, manufacturing devices for Samsung, Xiaomi, Motorola, and others.

• Recently expanded into laptops, tablets, and wearables — a bet on IT hardware growth under PLI 2.0.

Samsung India

• Noida facility acts as a global export hub for Galaxy smartphones.

• Samsung’s deep local integration supports both domestic sales and exports.

Optiemus Infracom

• Specializing in wearables, mobile accessories, and telecom hardware.

• Gaining from Make in India policies and niche export opportunities.

Beetel (Bharti Group) & Lava International

• These homegrown brands are making inroads into Middle East and African markets.

• Focused on feature phones, accessories, and affordable smart devices.

Why This Export Boom Matters for India

• Reduces Trade Deficit: Electronics has traditionally been import-heavy. Rising exports help narrow this gap.

• Boosts Jobs & Ecosystem: From skilled assembly to logistics and packaging, job creation is rising.

• Signals Supply Chain Maturity: India is now a credible global node in electronics manufacturing, much like Vietnam post-2016.

Strategic Edge : India’s Rising Role in Global Electronics

This growth wave reflects more than policy it's about trust. India is being seen as a stable, scalable, and secure manufacturing base. With rising geopolitical shifts, companies are prioritizing resilience over cost alone, making India attractive not just for exports but also as a strategic manufacturing partner.

India is not just assembling phones it is gradually building capabilities in components, displays, semiconductors, and wearables, laying the foundation for long-term sectoral dominance.

The Final Word

India’s 47% YoY jump in electronics exports in Q1 FY26 is not a one-off. It’s a clear signal that India’s manufacturing playbook is working. With policy continuity, sustained investment from global giants, and a deepening export base, India could soon cross $120–130 billion in annual electronics exports, potentially becoming the third-largest exporter after China and Vietnam by 2028.

The hardware revolution is here and it’s Made in India.