India`s electronics exports surge as PLI scheme sparks global investor interest: IESA Chief
India’s electronic exports have witnessed a significant upswing, largely due to the government’s Production-Linked Incentive (PLI) scheme and electronic manufacturing clusters, Ashok Chandal, President of the India Electronics and Semiconductor Association (IESA), told IANS on Wednesday.
He added that these initiatives have not only provided a boost to local production but also made India an attractive destination for global investors.
“Government policies have filled key industry gaps, enabling India to compete with established manufacturing hubs like China and Vietnam,” he said, adding that the country’s rising domestic demand for electronics has further strengthened the push for local manufacturing.
Government initiatives like the PLI scheme and ‘Make in India’ have played a crucial role in making Indian electronics manufacturing cost-competitive.
“These incentives have addressed cost disparities that previously held India back in electronics manufacturing,” Chandal explained.
He pointed out that the Indian government recently began disbursing reimbursements under the PLI scheme across various sectors, including electronics, semiconductors, automotive, and pharmaceuticals.
“This proves that the government is committed to its promises, which will encourage further investment and manufacturing expansion,” he added.
One of the biggest contributors to this transformation is Apple, which has significantly ramped up its manufacturing operations in India.
Chandal highlighted that Apple’s contract manufacturers, including Foxconn and Pegatron -- now partially under the Tata Group -- have helped establish India's credentials in high-tech manufacturing.
“This has given India immense global visibility. Manufacturing for Apple is a testament to India’s capability to deliver high-quality electronics,” he noted.
The impact of Apple’s expansion is evident, with the tech giant now accounting for over 50 per cent of India's total electronics exports.
While smartphones have been the driving force behind India’s electronic exports, other segments are also gaining traction.
Chandal believes that automotive electronics, electric vehicles (EVs), medical devices, industrial IoT, and consumer electronics hold immense potential for export growth.
“India’s electronics market is expected to touch $500 billion by 2030, creating abundant export opportunities. However, increasing domestic value addition remains a key priority,” he said.
To ensure sustained growth, Chandal emphasised the need for strengthening India's supply chain resilience and enhancing R&D capabilities.
