Domestic production of electronic items increased significantly to Rs 8.22 lakh crore, while exports rose to Rs 1.9 lakh crore in FY23. As per the survey, Apple assembled $14 billion worth of iPhones in India during FY24, constituting 14% of its global iPhone production.The share of electronics goods in merchandise exports of India increased to 6.7% in FY24 as compared to 2.7% in FY19, the survey said. India’s electronic exports to the US have transitioned from a trade deficit of $0.6 billion in FY17 to a trade surplus of $8.7 billion in FY24.Over the last five years, a seismic change has occurred in the global manufacturing realm, with major multinational companies, including Apple and others, looking to ‘de-risk’ themselves from China.“The appeal of India lies in its large domestic consumer market, which makes it attractive for companies to set up operations there. In the electronics sector, there is a focus on smartphone manufacturing and assembly,” the survey said.It added that substantial manufacturing capacities have been established in the country over the past five years and many major brands, both foreign and domestic, have either established their own manufacturing facilities or have outsourced manufacturing to electronics manufacturing services companies operating in India.Research by the Centre for Development Studies shows that India has seen a significant increase in domestic value addition (DVA), employment, wages and salaries in the mobile manufacturing segment since FY17. “The share of DVA in mobile phone output rose from an average of 8.7% in FY17 to FY19 (Phase 1) to 22% in FY20 to FY22 (Phase 2), indicating considerable increase in local participation,” the survey said.Further, the direct workforce in the production of mobile phones has more than tripled between FY17 to FY22, particularly benefiting female blue-collar workers. Wages and salaries increased by 317% between phase 1 and phase 2.In order to attract and encourage significant investments in the electronics value chain and boost exports, the government has introduced several schemes, including PLI scheme for large scale electronics manufacturing, PLI IT Hardware, scheme for promotion of manufacturing of electronic components and semiconductors (SPECS) and modified electronics manufacturing clusters (EMC 2.0). “As a result, the CAGR in the production of electronics goods from FY18 to FY23 was 16.19%, while the exports increased by 35.7% in the same period,” the survey added.The survey highlighted that India’s share in world electronics exports (captured by incorporating HS chapters 84, 85, and 90) has improved from 0.63% in 2018 to 0.88% in 2022. As such, India’s rose from 28th in 2018 to 24th in 2022 in global electronics exports. The survey pointed out that India’s electronics manufacturing sector has experienced significant growth since 2014, accounting for an estimated 3.7% of the global market share in FY22. At the same time, the industry contributed 4% to India’s total GDP in FY22.
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