Electronic Goods Exports register a whopping growth of 49% in April-December 2021 by clocking USD 11.0 Billion (Provisional) over USD 7.4 Billion during same period in the year 2020

U S A (18%), UAE (16.6%) top two Electronic Exports destinations

Electronic Goods Exports touch USD 1.67 Billion in December 2021, registering a growth of 33.99% over $1.25 Bn logged in December 2020

With USD 11.0 Billion exports achieved in the first three Quarters of FY2021-22, the sector is set to break all-time record highs, far exceeding the previous high of $11.7 Bn recorded in FY2019-20

India’s exports of Electronic Goods touched USD 1.67 Billion last month, registering a growth of 33.99% over $1.25 Bn logged in December 2020. During April-December 2021, the Sector Exports registered a growth of 49% to USD 11.0 Billion (Provisional) over USD 7.4 Billion during same period in the year 2020. As compared to April-December 2019 (USD 8.8 Billion) and April-December 2014 (USD 4.8 Billion), exports of Electronic Goods registered a growth of 26% and 131% respectively.

Top 5 export destinations in April-November 2021 (latest available, share% in bracket) are: U S A (18%), UAE (16.6%), China (7.6%), Netherland (4.5%) & Germany (4.2%).

Mobile Phones constitute a major chunk of India’s Electronics Goods sector exports. The sector includes IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment.

The overall exports of Electronics Goods in the last Financial Year (March, 2020-April, 2021) was USD 11.11 Billion, and with USD 11.0 Billion exports achieved in the first three Quarters of FY2021-22, the sector is set to break all-time record highs, far exceeding the previous high of $11.7 Bn recorded in FY2019-20.

Steps taken by the Government which are expected to increase the domestic manufacturing and export of Electronics Goods including mobile phones include formulation of Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, PLI for IT hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Clusters (EMC 2.0) under the National Policy on Electronics, 2019, which envisages to position India as a global hub for Electronics, System Design and Manufacturing (ESDM). Moreover, FDI upto 100% under the automatic route is permitted for electronics manufacturing subject to applicable laws. Phased Manufacturing Programme (PMP) has been notified to promote domestic value addition in mobile phones and their sub-assemblies / parts manufacturing. Tariff Structure has also been rationalized to promote domestic manufacturing of electronic goods, including Cellular mobile phones.

The Ministry of Electronics and Information Technology (MeitY) on Monday, 24^th January, released the second volume of a 5-year roadmap and Vision Document for the Electronics Sector; the first volume was released in November 2021. The Vision Document lays the roadmap to transform India into a US$300 billion electronics manufacturing powerhouse over the next 5 years, from the current US$75 billion. This will make Electronics Goods amongst India’s 2-3 top ranking exports by 2026. Electronics Goods exports are expected to increase from the projected USD 15 billion in 2021-22 to $120 billion by 2026.

Production Linked Incentive Scheme aims to boost domestic electronics manufacturing and exports through targeted incentives and measures. Electronic goods exports rose strongly in April-December 2021, led by mobile phones and IT hardware, with top destinations including the United States and UAE. Government measures to boost domestic manufacturing and exports include the Production Linked Incentive Scheme (PLI), PLI for IT hardware, SPECS, Modified Electronics Manufacturing Clusters (EMC 2.0), Phased Manufacturing Programme (PMP), tariff rationalization, and permissive foreign direct investment under the automatic route. A multi volume roadmap by the Ministry of Electronics and Information Technology targets large-scale expansion of electronics manufacturing and exports over the next five years.