Electronics Exports Surge 47% in Q1 FY26

India’s electronics exports have soared by 47% in the April-June quarter of 2025, driven by robust demand from the U.S., UAE, and China. This remarkable growth highlights India’s emergence as a global hub for electronics manufacturing, supported by the government’s India Semiconductor Mission and advancements in AI technology. The production of India’s first commercial-scale semiconductor chip, expected later this year, is further fueling optimism about the sector’s potential to transform the economy. With major destinations like the Netherlands and Germany also contributing to demand, India’s electronics industry is on track to surpass previous export records.

The surge is attributed to strategic policy interventions, including incentives for domestic manufacturing and partnerships with global tech firms. The Department for Promotion of Industry and Internal Trade (DPIIT) has signed pacts with companies like Ather Energy to strengthen the electric vehicle (EV) supply chain, fostering innovation and job creation. However, the sector faces challenges from U.S. tariffs, which could dampen growth if not addressed through trade negotiations. The government is exploring bilateral investment treaties (BITs) with countries like Saudi Arabia and Australia to diversify export markets and attract foreign direct investment (FDI).

This export boom has far-reaching implications for India’s economic landscape, creating opportunities for skilled labor and boosting MSME participation. The government’s focus on reducing compliance burdens and enhancing digital platforms for trade remedy submissions is expected to further streamline operations. As India positions itself as a leader in electronics and clean energy solutions, sustained policy support and global partnerships will be crucial. The sector’s success could pave the way for India to achieve its $100 billion FDI target, reinforcing its status as a manufacturing powerhouse.