Introduction
The electronics sector of India contributes around 3.4% of the country's Gross Domestic Product (GDP). The government committed nearly Rs. 1.62 lakh crore (US$ 17 billion) over the next six years across four PLI Schemes: Semiconductor and Design, Smartphones, IT Hardware and Components. The major products that are expected to drive growth in India's electronics manufacturing are mobile phones, IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics, auto electronics, electronic components, LED lighting, strategic electronics, printed circuit board assembly (PCBA), wearables and hearables, and telecom equipment. India became the second-largest mobile phone manufacturing country by volume after China. According to the International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker, India's smartphone market remained broadly stable in 2025, growing 0.5% year-on-year to reach 152 million shipments.
India's IT-ITeS revenue (US$ billion)
Source: NASSCOM
Meanwhile, India's mobile phone manufacturing sector has expanded rapidly, with production increasing approximately 33-fold from around Rs. 17,978 crore (US$ 2.94 billion) in FY15 to Rs. 6.27 lakh crore (US$ 70.95 billion) in FY26. India is now the world's second-largest mobile phone manufacturer by volume, and 99.2% of mobile phones used in the country are manufactured domestically, supported by government initiatives including the Production Linked Incentive (PLI) scheme. The IT sector in India remains a key pillar of the services economy, reinforcing its position as a global technology and innovation hub. According to the Economic Survey 2025–26, the sector is witnessing strong momentum driven by the steady expansion of Global Capability Centres (from 1,430 in FY19 to 1,700 in FY24) and rapid growth in emerging segments such as GenAI startups (from 66 in H1 CY2023 to 890 in H1 CY2025). Additionally, services exports continue to strengthen, supported by high-value software and professional services. The Economic Survey 2025–26 notes that software service export growth increased from 4.7% in FY16–FY20 to 13.5% in FY23–FY25, while professional and management consulting rose from 11.9% to 25.9% over the same period. India's IT industries and companies are majorly located in the southern regions such as Bangalore, Hyderabad, Chennai, Visakhapatnam, Trivandrum, Mysore, Mangalore, Kochi, etc. The country's major information technology hubs are Mumbai, Pune, Delhi, etc.
Export Trend
India's IT-ITeS industry exports trend (US$ billion)
Source: Ministry of Electronics and Information Technology, ESC, NASSCOM
India is among the world's leading IT and BPM services exporting countries. According to NASSCOM's Strategic Review 2025, India's technology industry export revenue was estimated at Rs. 19.37 lakh crore (US$ 224 billion) in FY25, up from Rs. 16.56 lakh crore (US$ 200 billion) in FY24 and Rs. 15.17 lakh crore (US$ 193 billion) in FY23.The Economic Survey 2025–26 further notes that services exports have grown at around 14% between FY23 and FY25, led by software services and professional and management consulting, with software services accounting for over 40% of total services exports and professional and management consulting emerging as the second-largest contributor. Engineering research and development (ER&D) has emerged as an increasingly important growth area within India's technology sector, driven by the growing adoption of software-centric products, artificial intelligence, cloud-native technologies and digital engineering.
According to NASSCOM's Strategic Review 2026, ER&D is gaining strategic importance as Indian technology providers increasingly adopt full-stack engineering models and strengthen platform and intellectual property ownership. With global ER&D spending projected to reach around Rs. 237.43 lakh crore (US$ 2.5 trillion) by 2030, India is positioning itself as an important hub for digital engineering, product innovation and technology-led research and development. Software products witnessed 7.8% growth to reach US$ 7.3 billion, mainly driven by the rise in demand for collaborative applications, application platforms, security software, system & service management software, and content workflow & management applications.
India's electronics goods exports reached Rs. 4.24 lakh crore (US$ 47.96 billion) in FY26, marking a 24.39% increase from Rs. 3.33 lakh crore (US$ 38.55 billion) in FY25. India's electronic goods exports reached Rs. 1.43 lakh crore (US$ 15.194 billion) during (April–June) FY27, registering a year-on-year growth of 22.54% compared with the corresponding period of FY26. According to DGCI&S data, the top five export commodity groups in FY27(April-June) comprise aluminium and products of aluminium, auto components/parts, automatic thinning machines and injecting moulding machinery, AC and refrigeration machinery, aircraft, spacecraft and parts. Together, these five commodity groups accounted for 18.69% of India's total exports.
Major Export Destinations
In Q1 2026–27 (April–June 2026), the top five destinations for India's electronic goods exports were the United States, the United Arab Emirates (UAE), China, Hong Kong and the Netherlands. The United States was the largest destination, with electronic goods exports worth Rs. 78,465.06 crore (US$ 8,262.09 million), followed by the UAE at Rs. 10,150.39 crore (US$ 1,068.80 million), China at Rs. 7,061.77 crore (US$ 743.58 million), Hong Kong at Rs. 5,876.17 crore (US$ 618.74 million) and the Netherlands at Rs. 4,970.73 crore (US$ 523.40 million). According to the Reserve Bank of India (RBI), software services exports from India increased by 7.3% year-on-year to Rs. 17.70 lakh crore (US$ 204.7 billion) in FY25. The USA remained the largest destination, accounting for 52.9% of total software services exports, valued at Rs. 9.36 lakh crore (US$ 108.3 billion), followed by Europe, which accounted for 32.8% and was valued at Rs. 5.81 lakh crore (US$ 67.2 billion). Within Europe, the United Kingdom was the largest destination, accounting for Rs. 2.75 lakh crore (US$ 31.8 billion), or 15.5% of India's total software services exports.
India's electronic goods country-wise export share FY25
Source: NIRYAT portal
Software services exports to Asia stood at Rs. 1.12 lakh crore (US$ 13 billion), with East Asia accounting for Rs. 93,387 crore (US$ 10.8 billion). Canada accounted for Rs. 23,346.90 crore (US$ 2.7 billion), or 1.3%, of total software services exports.
Government Initiatives
With the growing need for electronic goods, the Ministry of Electronics and Information Technology (MeitY) has implemented several production-linked incentives (PLI) to improve electronics production in India. The government has launched schemes such as the Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronic Manufacturing Clusters (EMC 2.0), etc., to promote the country's electronic goods industry.
A major recent initiative is the Electronics Component Manufacturing Scheme (ECMS), approved in March 2025 and notified in April 2025. The scheme aims to strengthen domestic electronics component manufacturing, deepen local supply chains and integrate India further into global value chains through incentives for component and sub-assembly manufacturing.
Software Technology Parks of India (STPI) Scheme
An autonomous society under the Ministry of Electronics and Information Technology is implementing the STPI scheme, which is a 100% export-oriented scheme for developing and exporting computer software, including exporting professional services using communication links or physical media.
Apart from the above-mentioned specific schemes, the Government of India has taken several measures to offset infrastructural inefficiencies and associated costs to provide exporters with a level playing field. Some of these can be mentioned below.
Remission of Duties and taxes on Exported Products (RoDTEP)
Under this scheme, goods and products exporters are granted freely transferable duty credit scripts on realized FOB value of exports in free foreign exchange at a specified rate. Such duty credit scrips can be used to pay basic customs duties for importing inputs or goods.
Duty Exemption & Remission Schemes
These schemes enable duty-free import of inputs for export production with export obligation. These schemes consist of the Advance Authorization Scheme, Duty-Free Import Authorization (DFIA) Scheme, Interest Equalization Scheme (IES), Zero duty EPCG Scheme, Post Export EPCG Duty Credit Scrip Scheme, etc.
Government Body
Ministry of Electronics and Information Technology (MeitY)
A major recent initiative is the Electronics Component Manufacturing Scheme (ECMS), approved in March 2025 and notified in April 2025. The scheme aims to strengthen domestic electronics component manufacturing, deepen local supply chains and integrate India further into global value chains through incentives for component and sub-assembly manufacturing.
FAQs
In Q1 FY27 (April–June 2026), the USA was the largest destination for India’s electronic goods exports at US$ 8,262.09 million, followed by the UAE at US$ 1,068.80 million and China at US$ 743.58 million. Hong Kong and the Netherlands were also among the leading markets for electronic goods exports from India.
India’s electronics exports reached US$ 47.96 billion in FY26, registering 24.39% growth over FY25. During April–June FY27, electronic goods exports stood at US$ 15.194 billion, increasing 22.54% year-on-year over the corresponding period of FY26, highlighting the strengthening India electronics export market.
India’s electronics manufacturing industry covers a broad range of products, including mobile phones, IT hardware, consumer electronics, industrial and auto electronics, electronic components, LED lighting, strategic electronics, PCBAs, wearables, hearables and telecom equipment. This diversified product base supports the expansion of electronics exports.
Mobile phone manufacturing has expanded rapidly, with production increasing around 33-fold from FY15 to FY26. India’s mobile phone production reached US$ 70.95 billion in FY26, while 99.2% of mobile phones used domestically are manufactured in India. This expanding manufacturing base is strengthening electronic goods exports from India.
The PLI framework is supporting electronics manufacturing through incentives across semiconductors and design, smartphones, IT hardware and components. The government has committed nearly US$ 17 billion over six years across these four PLI schemes, helping expand production capacity and strengthen the domestic electronics manufacturing industry.
The document highlights Bangalore, Hyderabad, Chennai, Visakhapatnam, Trivandrum, Mysore, Mangalore and Kochi as major technology locations, alongside Mumbai, Pune and Delhi. However, it does not provide state-wise electronics export data, so these locations should be viewed as technology and IT hubs rather than ranked electronics export hubs.
India is strengthening its electronics supply chain by expanding domestic component and sub-assembly manufacturing through the Electronics Component Manufacturing Scheme. Approved in March 2025 and notified in April 2025, the scheme aims to deepen local supply chains and integrate India more closely with global value chains.
Government support includes PLI schemes, SPECS, Modified Electronic Manufacturing Clusters, the Electronics Component Manufacturing Scheme and RoDTEP. Duty exemption and remission measures, including Advance Authorisation and EPCG-related schemes, also support exporters by reducing input and trade-related costs.
India’s electronics exporters have opportunities across major markets including the USA, UAE, China, Hong Kong and the Netherlands. Mobile phones also have key importing markets across South Asia, Africa and the Middle East. The expansion of domestic production and component manufacturing can further support India’s participation in global electronics supply chains.
India’s electronics export industry is positioned for continued expansion, supported by strong export growth, rising domestic manufacturing and government-backed component and semiconductor initiatives. With electronic goods exports growing 22.54% year-on-year in Q1 FY27, deeper domestic supply chains can further strengthen electronics exports and India’s position in global value chains.
RELATED SITES
Electronics and Computer Software Export Promotion Council (ESC)
ESC House,
155 Okhla Phase - III
New Delhi - 110020, India
Tel.:+91-11-47480000 (100Lines)
Email: info@escindia.com
Website: www.escindia.in
Partners
