India’s share of electronics exports rose in FY24, driven by Apple, says Economic Survey

The Economic Survey 2023-24, presented by Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, highlights significant advancements in India's electronics sector. Domestic production of electronic items surged to US$ 98.28 billion (Rs. 8.22 lakh crore), while exports rose to US$ 22.72 billion (Rs. 1.9 lakh crore) in FY23. Apple assembled iPhones worth US$ 14 billion in India during FY24, accounting for 14% of its global production. The share of electronics goods in India's merchandise exports increased to 6.7% in FY24 from 2.7% in FY19. Furthermore, India's electronic exports to the US shifted from a trade deficit of US$ 0.6 billion in FY17 to a surplus of US$ 8.7 billion in FY24.

The survey underscores a major shift in global manufacturing dynamics, with multinational companies like Apple diversifying their operations to mitigate risks associated with China. India's appeal lies in its large domestic market, attracting significant investments in electronics manufacturing. The sector has seen notable growth, with domestic value addition (DVA) in mobile phone production rising from 8.7% in FY17-19 to 22% in FY20-22. Employment and wages in the mobile manufacturing segment have also increased substantially. Government initiatives, including the Production Linked Incentive (PLI) schemes and the Electronics Manufacturing Clusters (EMC 2.0) scheme, have driven a compound annual growth rate (CAGR) of 16.19% in electronics production and a 35.7% rise in exports from FY18 to FY23. India's global electronics export share improved from 0.63% in 2018 to 0.88% in 2022, advancing from 28th to 24th globally. The sector now accounts for approximately 3.7% of the global market share and 4% of India's GDP in FY22.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.