According to recent data released by the Commerce Department, the export of electronic products from India has surpassed that of ready-made garments. The export of electronic products is estimated to have increased by over 50% to $23.6 billion in the financial year 2022-2023, while the export of ready-made garments increased only by 1% to $16.3 billion.
This shift towards electronics is due to the increase in the export of mobile phones, with estimates suggesting that over $11 billion worth of mobile phones were exported last fiscal year.
India’s impetus towards establishing a mobile phone manufacturing industry within its borders has been the predominant catalyst for the surge in electronics exports. This drive encompasses the production of renowned devices such as Apple’s iPhones. In recent times, India has emerged as a major producer and exporter of unbranded pharmaceuticals, with the drug industry ranking as the fifth-largest contributor to India’s export portfolio. Nevertheless, in spite of the spike in electronics exports, India’s balance of trade remains unfavorable, as it continues to import more than it exports.
India’s imports and exports are closely monitored to gauge the country’s economic well-being. Although there has been significant progress in reducing the gap between imports and exports, India still remains a net importer of goods. The only silver lining is that the difference between imports and exports is shrinking. India’s imports of energy continue to dominate, with petroleum shipments amounting to $210 million in the 2022-23 fiscal year. Coal and petroleum make up roughly 36% of India’s total import bill of $714 billion, which is higher than the previous year’s energy imports that accounted for 31% of the total imports.
India’s transition towards exporting electronics is a salutary indication for the nation’s economic expansion. By dint of the surge in the outflow of portable devices and the Indian government’s impetus towards fabricating more mobile phones domestically, the nation has turned out to be a preeminent participant in global electronic commerce. Nevertheless, the country’s addiction to energy imports is still a source of perturbation. The nation is required to concentrate on curbing its reliance on imported energy to ameliorate its economic well-being.
