India’s electronics exports are climbing rapidly, emerging as the country’s third-largest export category and the fastest-growing one in the first half of FY26, according to commerce ministry data. With the US discouraging Indian refiners from importing Russian crude, experts believe electronics could soon replace petroleum products as India’s second-biggest export after engineering goods—possibly within the next two years.
Just three years ago, electronics ranked seventh among India’s top exports. By FY25, it had moved ahead of gems and jewellery as well as chemicals to claim the third spot. Its rise has been steady and sharp, driven by increasing global demand and strong performance under India’s production-linked incentive (PLI) schemes.
Strong Growth Numbers
In the first six months of FY26, electronics exports surged 42% to $22.2 billion, up from $15.6 billion a year earlier. Around half of this growth came from Apple’s iPhone shipments. In comparison, petroleum product exports fell 16.4% to $30.6 billion, while engineering goods—still India’s top export—rose modestly to $59.3 billion.
Over the last three years, electronics exports have grown 63%, from $23.5 billion in FY23 to $38.5 billion in FY25. At the current pace, they are expected to double by FY26.
Oil Loses Its Shine
Petroleum exports have been declining steadily—from $97.4 billion in FY23 to $63.3 billion in FY25—as US sanctions limit India’s access to cheaper Russian crude. Experts say that without this price advantage, exports from Indian refiners may dip further.
The gap between petroleum and electronics exports has narrowed significantly—from $73.9 billion when the PLI scheme began to $24.7 billion in FY25. If current trends continue, that gap could fall to just $16 billion in FY26, setting the stage for electronics to overtake petroleum by FY28.
iPhones Driving India’s Export Story
The smartphone PLI scheme has been the main growth engine. Global manufacturers like Apple, Samsung, and Dixon Technologies have expanded local production to benefit from incentives. Apple, in particular, has made India its second major production base after China. In the first half of FY26 alone, it exported iPhones worth $10 billion—accounting for 75% of all smartphone exports and nearly half of India’s total electronics exports.
India’s New Manufacturing Edge
For decades, electronics have been China’s top export. India is now aiming to replicate that success by positioning itself as a reliable alternative for global supply chains. As geopolitical shifts push companies to diversify manufacturing bases, India’s mix of policy incentives, skilled workforce, and growing digital infrastructure is helping it move closer to becoming a global electronics hub.
The Road Ahead
If current trends continue, electronics could become India’s second-largest export category by FY28, behind only engineering goods. The pace of this shift will depend on how India’s oil trade evolves amid US restrictions on Russian crude—but one thing is clear: India’s export story is being rewritten, chip by chip, device by device.
