India's Electronics Exports to US Surpassed $6.6 Billion

• 16 Jan 2024

India's electronics exports to the United States have surged over 200% year-on-year to reach an unprecedented $6.6 billion during the first nine months of 2023, marking a significant milestone, according to the India Cellular and Electronics Association (ICEA).

Key Points

• Record-Breaking Growth: India's electronics exports to the US witnessed an extraordinary growth of approximately 253%, reaching an estimated $6.6 billion in Jan-Sep 2023, compared to $2.6 billion in the same period last year.
• Continuous Upward Trend: ICEA data indicates a consistent upward trajectory in India's electronics exports, surpassing $4.5 billion in 2022 from an estimated $1.3 billion in 2018, showcasing a growth of over 300%.
• Impressive Bilateral Trade: Bilateral electronics trade between India and the US showed a remarkable increase of 84%, reaching an estimated $9 billion in Jan-Sep 2023, compared to $4.9 billion in the corresponding period of the previous fiscal year.
• Indo-US Task Force: In August 2023, ICEA launched the Indo-US Task Force for Electronics, aiming to elevate bilateral electronics trade from $8.4 billion to an ambitious target of $100 billion within a decade.
• China's Decreasing Share: The share of electronics imported from China into the US dropped from an estimated 46% in 2018 to 24% in Jan-Sep 2023, reflecting a strategic diversification of supply chains by the US.
• Rise of Vietnam and Taiwan: Vietnam and Taiwan experienced significant growth in electronics exports to the US, soaring by 420% and 239%, respectively, from 2018 to 2022.
• Geopolitical Impact: The notable surge in India's electronics exports underscores the potential of the strategic partnership between India and the US to influence global electronics trade. The focus on smartphone exports is particularly promising, with the potential for a 5x growth in the next 3-5 years.