India’s electronics exports are setting new records, driven largely by surging iPhone manufacturing and favourable policy backing. Exports reached $22.2 billion in the first half of FY26, up 42% from $15.6 billion the previous year. iPhones accounted for over half of this surge, with shipments totalling $10 billion.

Smartphone exports hit $13.4 billion, with iPhones accounting for more than three-quarters of the total. This rise has driven electronics to third place among India’s fastest-growing export sectors, trailing only engineering goods and petroleum products.

Meanwhile, petroleum exports saw a decline. They fell 16.4% to $30.6 billion in the first half of fiscal year 26, from $36.6 billion the previous year. Following US-led restrictions on Russian crude, global oil markets tightened and refinery margins fell.

The Production-Linked Incentive (PLI) scheme keeps attracting major manufacturers such as Apple, Samsung, and Dixon Technologies to develop their operations in India. The sector has risen significantly from seventh in FY22 to third in FY25, surpassing traditional export categories such as diamonds, jewellery, and textiles.

If current trends continue, electronics exports might reach about $47 billion by FY26, positioning the industry to overtake petroleum and become India’s second-largest export contributor in the coming years.