India's Electronics Exports Grow By 56%, Emerging As 4th Largest Export Item

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India's electronics sector has witnessed a remarkable surge in exports, propelling it to become the country's fourth largest exported item during the June quarter.

According to the data released by the Ministry of Commerce, electronics exports experienced a growth rate of over 56 per cent in the April-June period, reaching $7 billion, up from $4.5 billion in the corresponding period last year. Electronic goods exports clocked $25.3 billion, rising a stunning 49% since 2021-22, even in a year when overall exports grew just 6.5%

The growth in electronics exports is particularly significant as it stands out as the only sector to record growth among the top five categories of exports. The data analysis also indicates that unless the gems and jewellery segment experiences substantial growth in the next three quarters, electronics is poised to secure its position as the third-largest category of exports in India, closely following engineering goods and petroleum products, by the end of FY 2023-24.

The electronics category has significantly narrowed the gap with gems and jewellery exports, which had been leading in Q1 by $550 million. This stark reduction in the gap, compared to a year ago when it was more than nine times higher at $5 billion, indicates the rapid progress of the electronics sector.

Leading the charge in the electronics sector are mobile phones, which have exhibited tremendous growth following the introduction of the government's production-linked incentive (PLI) scheme in 2020. In the last 15 months, mobile phones have been the primary driver of growth in electronics exports, contributing a staggering 52 per cent to the total electronics exports from India in the first quarter of the current fiscal year, amounting to near about $4 billion. This marks a significant increase from the 38 per cent contribution seen a year ago.

Apple's iPhones, in particular, have played a dominant role in the surge of mobile phone exports, constituting 35 per cent of all electronics exports and an impressive 66 per cent of total mobile exports in Q1. The iPhone models 12, 13, and 14 are among the devices exported from India, and their production is handled by three vendors - Foxconn Hon Hai, Wistron, and Pegatron. Its three contract makers—Foxconn Hon Hai, Wistron and Pegatron—have committed exports of $7.5 billion in FY24 or the third year of the production-linked incentive (PLI) scheme for mobile phones.

India's Electronics Exports Grow By 56%, Emerging As 4th Largest Export Item

Unless the gems and jewellery segment experiences substantial growth in the next three quarters, electronics is poised to secure its position as the third-largest category of exports in India, , electronics, Electronics manufacturing, Electronics Exports, Production-linked incentive (PLI) scheme

www.businessworld.in

@CallSignMaverick @Raj-Hindustani @protean @indushek @mig25 @migflug @Skull and Bones @Cheepek @Hellfire2006 @Vikramaditya-I

 

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This chart is correct, India is making baby steps and hopes to spread its wings soon.

We have vastly bad labor laws like communists which disincentives the super large industries in making agile changes.
For example - for any garment manufacturing unit, any industry with more than 50 labourers is controlled by stiffer rules, so industrialists make multiple small units due to which they will not get the benefit of the scale of economies. Many such industrialists moved to Bangladesh and Vietnam.

Unfortunaltely, political parties are making it tough to restructure the labour laws.

 

[Hephaestus]

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India's electronics sector has witnessed a remarkable surge in exports, propelling it to become the country's fourth largest exported item during the June quarter.

According to the data released by the Ministry of Commerce, electronics exports experienced a growth rate of over 56 per cent in the April-June period, reaching $7 billion, up from $4.5 billion in the corresponding period last year. Electronic goods exports clocked $25.3 billion, rising a stunning 49% since 2021-22, even in a year when overall exports grew just 6.5%

The growth in electronics exports is particularly significant as it stands out as the only sector to record growth among the top five categories of exports. The data analysis also indicates that unless the gems and jewellery segment experiences substantial growth in the next three quarters, electronics is poised to secure its position as the third-largest category of exports in India, closely following engineering goods and petroleum products, by the end of FY 2023-24.

The electronics category has significantly narrowed the gap with gems and jewellery exports, which had been leading in Q1 by $550 million. This stark reduction in the gap, compared to a year ago when it was more than nine times higher at $5 billion, indicates the rapid progress of the electronics sector.

Leading the charge in the electronics sector are mobile phones, which have exhibited tremendous growth following the introduction of the government's production-linked incentive (PLI) scheme in 2020. In the last 15 months, mobile phones have been the primary driver of growth in electronics exports, contributing a staggering 52 per cent to the total electronics exports from India in the first quarter of the current fiscal year, amounting to near about $4 billion. This marks a significant increase from the 38 per cent contribution seen a year ago.

Apple's iPhones, in particular, have played a dominant role in the surge of mobile phone exports, constituting 35 per cent of all electronics exports and an impressive 66 per cent of total mobile exports in Q1. The iPhone models 12, 13, and 14 are among the devices exported from India, and their production is handled by three vendors - Foxconn Hon Hai, Wistron, and Pegatron. Its three contract makers—Foxconn Hon Hai, Wistron and Pegatron—have committed exports of $7.5 billion in FY24 or the third year of the production-linked incentive (PLI) scheme for mobile phones.

India's Electronics Exports Grow By 56%, Emerging As 4th Largest Export Item

Unless the gems and jewellery segment experiences substantial growth in the next three quarters, electronics is poised to secure its position as the third-largest category of exports in India, , electronics, Electronics manufacturing, Electronics Exports, Production-linked incentive (PLI) scheme

www.businessworld.in

@CallSignMaverick @Raj-Hindustani @protean @indushek @mig25 @migflug @Skull and Bones @Cheepek @Hellfire2006 @Vikramaditya-I

Love it. We have a long way to go. Hoping we'll get there. Every journey starts with a first step!