iPhone Exports Fuel Record Electronics Growth, Set to Overtake Petroleum

The boom in iPhone manufacturing is powering a remarkable rise in India’s electronics exports. With strong global demand and policy support, electronics are now set to replace petroleum as India's second-largest export category.

Electronics Exports Surge as iPhones Drive Growth

India's electronics exports touched $22.2 billion in the first 6 months of FY26, marking a jump of 42% from $15.6 billion last year. Apple’s iPhones alone contributed nearly 50% to this growth, shipping $10 billion worth of devices. 

This pushed electronics to become the fastest-growing export sector, now ranked third after engineering and petroleum products. Notably, smartphone exports reached $13.4 billion, with iPhones forming over 75% of that total.

Decline in Petroleum Exports Narrows the Gap

While electronics rise, petroleum exports are facing headwinds. They fell 16.4% to $30.6 billion in H1 FY26 from $36.6 billion the previous year. With US-led restrictions on Russian oil diminishing India’s crude import advantage, refiners are expected to face reduced margins, affecting export capacity further. 

Petroleum exports, which hit $97.4 billion in FY23, declined to $63.3 billion in FY25, widening the vulnerability of the sector.

Read More:Foxconn Hyderabad Unit Eyes to Double Apple AirPods Output to 200,000 Units Monthly!

Geopolitical Tailwinds, PLI Scheme Boost Electronics

India’s electronics growth is also rooted in global supply chain shifts, encouraging manufacturers like Apple and Samsung to scale up production outside China. The Production-Linked Incentive (PLI) scheme has been effective in attracting investment and increasing high-value exports. Companies such as Dixon Technologies are also playing a central role in domestic assembly and export of mobile devices.

Electronics Poised to Become Second-Largest Export

Electronics exited FY22 ranked seventh but rapidly climbed to third in FY25 by overtaking categories like gems and jewellery, chemicals, drugs and garments. If current trends continue, exports from this sector are projected to double from FY23 to FY26, likely reaching around $47 billion by FY26. 

The gap between petroleum and electronics narrowed from $73.9 billion in FY23 to $24.7 billion in FY25, and could shrink to $16 billion in FY26.

Conclusion

India’s electronics export growth, powered largely by iPhones, is reshaping the trade dynamics. With petroleum declining and engineering stable, electronics are on track to become the country’s second-largest export category by FY28.

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