India has dramatically altered the global export landscape, giving sleepless nights to China, while what was once an export engine heavily reliant on petroleum products is now being powered by electronics. According to data from the Ministry of Commerce and Industry, electronics exports surged by a remarkable 42% in the first six months of FY26, reaching approximately $22. 2 billion. This growth signals a new era for India's manufacturing sector, contributing Notably to job creation and economic development.
The Shifting Export DNA
India's export profile is undergoing a rapid and fundamental transformation. For decades, India's export engine was largely fueled by oil and petroleum products. However, electronics is fast gaining ground and is poised to become the second-largest export category soon. This shift isn't just confined to India; it's set to change the very DNA of global exports. The gap between electronics and petroleum is narrowing, and if this momentum continues, electronics could well claim the second spot after engineering within a few years. This truly signifies a profound change in India's export identity.
Genesis of the PLI Scheme
This transformation didn't happen overnight. It began in 2020 when the government launched the Production-Linked Incentive (PLI) scheme for large-scale electronics manufacturing. The timing couldn't have been better. The COVID-19 pandemic had exposed the world's over-reliance on Chinese factories, and global manufacturers were actively seeking alternatives. India seized this opportunity and moved swiftly. The PLI scheme offered incentives of 4-6% on incremental sales of locally manufactured phones and components, based on 2019-20 levels, while the mobile handset scheme, launched with an outlay of ₹40,951 crore that August, was designed to reward companies that scaled up production in India. Its design was simple yet impactful: the faster you grew, the more money you got back, while crucially, it targeted phones priced above ₹15,000, attracting global giants like Apple and Samsung. This wasn't about assembling cheap devices; it was about building a serious export engine, positioning India as a reliable, long-term alternative to China.
The Apple Effect
Perhaps the biggest catalyst for India's electronics surge has been Apple's production shift. In the first half of FY26 alone, iPhones worth $10 billion were exported from India, while this accounts for roughly 45% of the country's total electronics exports and over three-quarters of its smartphone exports, which totaled $13. 4 billion. Apple has effectively made India its second-largest manufacturing base after China. Indian-made iPhones now account for over 20% of global sales, reflecting Apple's rapid. Expansion through local partners like Foxconn, Pegatron, and Wistron (now owned by Tata Electronics).
