India’s electronics exports are rapidly increasing and could soon replace petroleum products as the country’s second-largest export category, following engineering goods. According to data from the Ministry of Commerce, electronics exports strengthened their position as India’s third-largest and fastest-growing export segment in the first half of fiscal year 2026. Industry experts noted that, within the next two years, electronics could surpass petroleum products as restrictions on the purchase of Russian crude continue to influence trade patterns.

According to the half-yearly export data released by the commerce ministry, electronics exports surged 42% to $22.2 billion — about half of which is accounted for by Apple’s iPhones — from $15.6 billion in the year earlier.

The rise in electronics exports reflects India’s ongoing efforts to diversify its export base and reduce dependence on traditional sectors such as petroleum. The shift also highlights the growing competitiveness of India’s manufacturing sector, supported by policy initiatives and global supply chain realignment. The United States has reportedly advised Indian refiners to limit imports of Russian oil, prompting refiners to adjust sourcing strategies and contributing to a potential slowdown in petroleum product exports.

At the same time, India’s electronics industry has benefited from rising global demand for smartphones, semiconductors, and electronic components. Government programs such as the Production-Linked Incentive (PLI) scheme and the “Make in India” initiative have encouraged both domestic and foreign manufacturers to expand production within the country. This has strengthened India’s position as a key player in the global electronics supply chain.

Experts believe that if current growth trends continue, electronics could account for a significantly larger share of total exports by 2027. The sector’s rapid expansion is being driven by increased investment from multinational companies, export-oriented manufacturing hubs, and the growing participation of Indian firms in high-value production.

Meanwhile, petroleum product exports—traditionally one of India’s top revenue earners—face challenges from fluctuating global oil prices and shifting trade policies. As refiners adapt to evolving market conditions and changes in import restrictions, the export share of petroleum products is expected to decline gradually.

The expansion of electronics exports signals a broader structural transformation in India’s trade profile. The shift toward technology-driven goods indicates a move up the global value chain and reflects India’s ambition to become a major center for advanced manufacturing. Industry analysts view this development as a positive sign for long-term export stability and resilience.

Overall, India’s export composition is undergoing a notable change, with electronics emerging as a central driver of growth. Supported by favorable policies, increasing investment, and strong international demand, the sector is expected to play an increasingly important role in shaping the country’s trade landscape and reducing reliance on traditional energy exports.