India’s Export Landscape Transforms as Electronics, Led by iPhone Boom, Overtakes Petroleum

This remarkable surge is largely powered by a single product: the iPhone. Major global manufacturers, primarily Apple’s partners Foxconn, Pegatron, and the Tata-owned Wistron, have significantly ramped up production in India.

The result has been a meteoric rise in electronics exports, which are projected to grow over 75% year-on-year, pushing the sector past traditional petroleum exports.

A Structural Shift in the Making

Historically, India’s exports have been dominated by raw materials, agricultural goods, and semi-finished products with limited value addition. The rise of complex electronics assembly marks a pivotal structural change for the economy. This isn't just a quantitative increase; it’s a qualitative leap up the global value chain.

“This is a watershed moment for ‘Make in India’,” the government’s flagship initiative, which, coupled with the Production Linked Incentive (PLI) scheme, has been instrumental in this boom.

These policies have offered targeted financial incentives, attracting over $10 billion in new investments since 2020 and creating a conducive environment for multinational corporations to set up shop.

Global Realignment Fuels India’s Rise

The shift is not solely homegrown. It is accelerated by a global realignment of supply chains. As companies adopt a “China Plus One” strategy to diversify manufacturing away from China—driven by geopolitical tensions and rising costs—India has emerged as the prime beneficiary. Its large, cost-competitive workforce and improving infrastructure make it an attractive alternative for high-tech manufacturing.

This boom has profound implications. It fuels massive job creation across assembly lines, logistics, and packaging. Furthermore, it catalyzes the development of a local supplier ecosystem, from component makers to accessory manufacturers, creating a virtuous cycle of industrial growth.

Challenges on the Horizon

Despite the success, challenges remain. India’s electronics assembly still relies heavily on imported components, limiting the domestic value addition. Infrastructure gaps and a need for skilled labor could constrain future scaling. The next critical frontier, experts say, is the localization of semiconductor production to create a fully integrated and self-reliant electronics ecosystem.

The dramatic rise of electronics exports is more than a statistical victory; it is a strong signal that India is solidifying its position on the global manufacturing map. While the road ahead requires navigating dependencies and infrastructure hurdles, this transformation positions India for a more resilient, high-tech economic future.