India’s Electronics Export to US & UK increased significantly amid tensions with China

India is making strides in the electronics export market, particularly in the UK and US, amidst rising tensions with China.

Increasing Market Share

• A study by Fathom Financial Consulting in London reveals significant growth in India’s electronics exports to the US and UK.
• In November 2023, India’s share of electronics exports to the US surged to 7.65%, up from 2.51% in November 2021.
• Similarly, in the UK, India’s share increased from 4.79% to 10% during the same period.

Challenges in Other Markets

• However, India’s success has been more limited in the European Union and Japan.
• In Germany, India’s exports compared to China stood at 3.38%, with a global ratio of 3.52%.
• This indicates a trend towards diversifying supply chains rather than completely moving away from China-based production.

Embracing Dual Supply Chains

• Indian firms are emphasizing their role in multinational companies’ ‘China plus one’ strategy, aimed at creating backup capacity in other nations.
• This strategy is in line with the ‘Make in India’ initiative, which focuses on job creation, increasing exports, and reducing imports.

Government Incentives to Attract Manufacturers

• To attract electronics manufacturers, the Indian government is offering incentives such as tax breaks, rebates, simplified land acquisition, and financial support.
• The objective is to stimulate domestic manufacturing, boost exports, and facilitate global expansion through partnerships.

Major Players in Indian Manufacturing

• India hosts Samsung’s largest mobile phone factory globally and produces approximately 7% of all iPhones for Apple through contract manufacturers like Foxconn Technology Group and Pegatron Corp.
• Additionally, the country is poised to commence semiconductor production starting this year.