From Chips to Charts: India’s Electronics Boom Powers Export Revival, Says GTRI

India’s export sector faced a challenging June 2025, with flat overall growth masking a dramatic shift beneath the surface: a booming electronics sector is now propping up the country's trade performance even as traditional export mainstays crash.

According to the latest analysis by the Global Trade Research Initiative (GTRI), India’s merchandise exports in June stood at USD 35.14 billion—a negligible rise of just 0.05% over June 2024. This stagnation hides sharp contrasts between sectors.

Electronics exports soared 47.1% to USD 2.8 billion, driven by surging shipments of iPhones and smartphones to major markets like the U.S. Companies rushed deliveries in anticipation of higher U.S. tariffs, boosting India's high-tech export profile.

In stark contrast, traditional exports suffered heavy losses. Gems and jewellery exports plunged 20.4% to USD 1.78 billion, while petroleum product exports fell 15.9% to USD 4.6 billion due to weaker global demand and lower crude prices.
Imports also showed signs of cooling. Overall merchandise imports fell 3.7% to USD 53.9 billion, led by a steep 25.7% drop in gold imports to USD 7.5 billion and an 8.4% decrease in crude and petroleum imports at USD 13.8 billion. Coal and coke imports declined 19.1% to USD 7.75 billion thanks to improved domestic supply.

Electronics imports, however, climbed 9.5% to USD 8.4 billion, while machinery and computer imports grew 8.5% to USD 4.4 billion, signalling healthy domestic investment in manufacturing and assembly capacity.

Exports to the U.S. remained robust, surging 23.5% to USD 8.3 billion, reinforcing America’s position as India’s top export market. By comparison, exports to China stood at a more modest USD 1.4 billion, albeit up 17.2% year-on-year.
GTRI’s report suggests that India’s export profile is undergoing a structural transformation. High-import-intensity sectors like electronics are gaining ground, while labour-intensive traditional sectors struggle to maintain momentum.

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