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Exports

India's Electronics Sector on the Rise: Poised to Outpace Petroleum Exports by 2028

Strategic Insights

— 1 min read

India's electronics sector is booming, with a 42% surge in exports to $22.2 billion in the first half of the fiscal year 2026. This rapid growth, driven by Apple's iPhone production and the government's Production-Linked Incentive (PLI) scheme, has propelled electronics to the third-largest export category, surpassing traditional sectors like gems and jewellery, chemicals, and readymade garments. Experts predict that electronics could outpace petroleum exports, currently India's second-largest export, by 2028, cementing the nation's position as a global electronics manufacturing hub.

Key Takeaways:

  • Electronics exports have surged 42% to $22.2 billion in the first half of the fiscal year 2026, making it the third-largest export category.
  • The category has rapidly moved past major sectors like gems and jewellery, chemicals, drugs and pharmaceuticals, and readymade garments.
  • Apple's iPhone production has been the main engine for the electronics export boom, with the company shipping iPhones worth a record $10 billion in the first six months of the current fiscal year.
  • The global sales share of 'Made-in-India' iPhones is steadily rising, with over a fifth now being shipped from India.
  • Petroleum products exports have declined 16.4% to $30.6 billion in H1 FY26, narrowing the gap with electronics to approximately $16 billion.
  • Experts project that if current growth rates persist, electronics could replace petroleum as India's second-largest export by FY28.

Statistics:

  • Electronics exports have jumped 63% from $23.5 billion in FY23 to $38.5 billion in FY25.
  • Apple's iPhone exports accounted for over 75% of the total smartphone exports ($13.4 billion) and a substantial 45% of the total $22.2 billion in electronics exports for H1 FY26.
  • The difference between second-placed petroleum and electronics stood at $73.9 billion at the start of the Production-Linked Incentive (PLI) scheme, and has narrowed to approximately $16 billion in H1 FY26.

Sources:

  • "India's electronics sector on the rise, poised to outpace petroleum exports by 2028" by TOI Tech Desk (published in The Times of India on [no date mentioned])

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