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India Trade / Electrical Equipment

India Electrical Equipment Trade

Electrical machinery and equipment has emerged as India's fastest-growing export category in recent years, driven by a combination of government policy (PLI schemes), global supply chain diversification away from China, and rising domestic manufacturing scale. The category covers everything from mobile phones and solar cells to switchgear, cables, and industrial motors.

The mobile phone manufacturing story is the clearest example of policy-driven export success. Apple began producing iPhones in India through Foxconn and Tata Electronics, and Samsung has a large facility in Noida. India's smartphone exports crossed $15 billion in FY 2023-24, up from near-zero five years ago. PLI incentives worth ₹12,000 crore played a central role in attracting these manufacturers.

On the import side, India remains heavily dependent on Chinese electronics — consumer gadgets, components, and chips. The import bill for electronics is one of India's largest after crude oil and gold, reflecting a structural gap between domestic manufacturing capability and demand.

ExportsFY 2025-26
$21.6B
50.9% YoY
ImportsFY 2025-26
$41.9B
52.7% YoY
Trade DeficitFY 2025-26
$20.3B
ANNUAL TREND — ELECTRICAL EQUIPMENT (USD BN)
■ Exports■ Imports
20.221-2228.622-2334.423-2444.024-2521.625-26
YearExportsYoYImportsYoYBalance
FY 2025-26$21.6B-50.9%$41.9B-52.7%$20.3B
FY 2024-25$44.0B+28.0%$88.6B+11.7%$44.5B
FY 2023-24$34.4B+20.3%$79.3B+17.2%$44.9B
FY 2022-23$28.6B+41.8%$67.6B+8.2%$39.0B
FY 2021-22$20.2B+42.0%$62.5B+33.8%$42.3B
Top Export Commodities
HS 85Electrical machinery and equipment and parts there
44.0B10.1% of total exports+28.0% YoY
Top Import Commodities
HS 85Electrical machinery and equipment and parts there
88.6B12.3% of total imports+11.7% YoY
KEY POINTS
  • Fastest growing India export category in FY 2024-25 (+28% YoY)
  • iPhone/smartphone exports alone crossed $15B in FY 2023-24
  • PLI scheme for electronics (₹12,000 crore) catalysed the boom
  • Solar cell/panel exports growing as India scales renewable manufacturing
  • China remains dominant supplier of electronic components and chips
INVESTOR ANGLE

The PLI beneficiaries are directly exposed to this export growth — Dixon Technologies, Kaynes Technology, Syrma SGS, and Amber Enterprises are the listed contract manufacturers. Apple supply chain plays (Tata Electronics is unlisted; component suppliers like Jabil's India operations). The solar segment benefits WAAREE, Vikram Solar (IPO stage), and Premier Energies.

FREQUENTLY ASKED QUESTIONS
Why are India's electronics exports growing so fast?
Three factors: 1) Production Linked Incentive (PLI) schemes offering 4-6% cash incentives on incremental sales; 2) Global companies diversifying supply chains away from China (China+1 strategy); 3) Apple's decision to manufacture iPhones in India, which brought a premium manufacturing ecosystem.
What electronic goods does India export?
The largest categories are smartphones and mobile phones (led by Apple and Samsung assembly), followed by telecom equipment, solar cells, electrical cables, transformers, and switchgear. The mix has shifted significantly toward high-value items over the past five years.
Why does India still import so many electronics despite making more?
India assembles electronics but lacks a deep semiconductor and components ecosystem. Chips, displays, camera modules, and advanced components must be imported, mostly from China, Taiwan, and South Korea. The value of electronic imports remains far higher than exports — a gap that will take a decade to close.
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