What is the current ranking of India's electronics export segment?

The electronics sector is now India's second-largest export segment, following petroleum products.

How much have India's electronics exports grown recently?

Electronics exports grew at a 17.2% CAGR from 2015 to 2024, reaching $42 billion in 2024.

What is Niti Aayog's recommendation for future electronics growth?

Niti Aayog recommends shifting from assembly-led growth to component-led manufacturing and greater integration into global value chains.

Home / Business and Economy / India's Electronics Exports Soar, But Component Gap Widens

India's Electronics Exports Soar, But Component Gap Widens

14 Feb

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Summary

Electronics sector is India's second-largest export segment.
Exports grew 17.2% CAGR, reaching $42 billion in 2024.
Dominance in assembly masks import dependence on key components.

India's Electronics Exports Soar, But Component Gap Widens

India's electronics sector has achieved significant growth, now ranking as the country's second-largest export segment after petroleum products. Between 2015 and 2024, electronics exports experienced a compound annual growth rate (CAGR) of 17.2%, increasing from $8.6 billion to $42 billion. This segment now constitutes 10% of India's total exports and contributes 3.4% to the nation's GDP, generating approximately 25 lakh jobs.

Despite this success, the growth is predominantly driven by assembly operations, especially in mobile phones and telecom equipment, which represent over 52% of the export basket. India remains highly import-dependent for crucial components such as integrated circuits and semiconductors. While India holds a 3.5% share in global mobile phone exports, its share in integrated circuits is a mere 0.02%, despite importing $23.8 billion worth of chips in 2024.