India’s electronics manufacturing sector continues its impressive growth trajectory, with exports reaching a remarkable $12.41 billion during the first quarter of FY26 (April-June 2025). This stellar performance reinforces India’s position as a global electronics manufacturing hub and highlights the success of government initiatives like the Production Linked Incentive (PLI) scheme.
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Export Destination Breakdown: USA Leads the Charge
The United States maintains its position as India’s largest electronics export market, absorbing over half of the total shipments. Here’s how the numbers stack up:
| Country | Export Share | Estimated Value (USD Billion) |
|---|---|---|
| USA | 60.17% | $7.47 |
| UAE | 8.09% | $1.00 |
| China | 3.88% | $0.48 |
| Netherlands | 2.68% | $0.33 |
| Germany | 2.09% | $0.26 |
| Others | 23.09% | $2.87 |
What’s Driving This Growth?
The surge reflects India’s strategic focus on becoming a global electronics manufacturing powerhouse. Key factors include:
Manufacturing Excellence: Companies are leveraging India’s skilled workforce and competitive costs to produce smartphones, semiconductors, and consumer electronics for global markets.
Policy Support: Government initiatives under Atmanirbhar Bharat have created a conducive environment for electronics manufacturing and exports.
Market Diversification: While the USA dominates, growing exports to UAE and European markets show India’s expanding global footprint.
The Road Ahead
This $12.41 billion quarterly performance puts India on track to potentially cross $50 billion in annual electronics exports for FY26. The strong USA demand, coupled with emerging opportunities in Middle Eastern and European markets, positions Indian electronics manufacturers for sustained growth.
The government’s target of achieving $300 billion in electronics manufacturing by 2026 appears increasingly achievable with such robust export momentum.
For more insights on India’s tech manufacturing landscape, explore our coverage of semiconductor manufacturing initiatives and startup ecosystem developments on TechnoSports.
