India needs to overcome cost disadvantages, fully utilize free trade agreements (FTAs), and focus on producing strategic electronic components to increase its electronics exports, according to the latest NITI Aayog Trade Watch Quarterly report.
The report, covering the July-September 2025 quarter, suggested that India should improve market access and join global value chains more effectively. This can be done through trade support, government procurement, anchor investments, MSME participation, and greater domestic value addition.
Electronics Market and India’s Current Share
The global electronics market is worth $4.6 trillion, but India’s share remains only around 1% in 2024. Currently, important segments like integrated circuits and semiconductors are dominated by China, Hong Kong, and Taiwan.
Therefore, the report emphasizes the need for India to shift from assembly-based production to component-based manufacturing to capture higher value and reduce import dependence.
Key Policy Recommendations
To support growth, NITI Aayog recommends:
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Predictable domestic procurement to encourage investment
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Simplified regulations to reduce business hurdles
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Improved export finance for manufacturers
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Anchor investments that bring technology and create stable demand
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Support for research and domestic value addition
By following these measures, India can move from basic manufacturing to a globally competitive electronics ecosystem, helping achieve the $500 billion manufacturing goal by FY2030.
Role of FTAs in Growth
Since 2014, India has signed seven FTAs, including agreements with Mauritius, Australia, UAE, Oman, U.K., EFTA nations, and New Zealand. Recently, India and the European Union (EU) finalized a trade agreement on January 27, 2026, which will be India’s 19th FTA. This deal is expected to boost exports to the 27-nation EU bloc.
Although FTAs improve access to external markets, the report stresses that domestic policies are essential to attract investment, especially in a geopolitically uncertain environment.
Electronics Export Trends and Opportunities
Currently, India’s electronics exports are mostly in mobile phones, which make up 52.5% of total exports. Other items include power equipment and wires. Exports mainly go to the USA, UAE, and Netherlands. On the import side, integrated circuits (23.7%), mobile phones (17.5%), and data-processing machines (10.6%) dominate.
The report also highlights cross-border e-commerce as an emerging driver for electronics exports. This can help India achieve its goal of higher merchandise exports by 2030.
Between 2015 and 2024, India’s export growth was mainly in telecom and mobile devices, while chips and semiconductors showed limited growth.
Conclusion
In conclusion, NITI Aayog emphasizes that India should combine strategic FTAs, trade facilitation, and domestic support policies. By doing so, the country can shift from assembly-led production to high-value component manufacturing, building a strong, competitive electronics industry for global markets.
