1. Home >
  2. Export Import News >
  3. Export News >
  4. Trade winds: Big jump in electronics exports allays deficit fears >
  5. Trade winds: Big jump in electronics exports allays deficit fears

Online Export Import Data Search

Complete Training Video : Click Here

Trade winds: Big jump in electronics exports allays deficit fears.

Date: 24-06-2019
Subject: Trade winds: Big jump in electronics exports allays deficit fears
Massive electronics imports and their debilitating impact on trade balance have long pressured the country’s current account, but a spurt in electronics exports since last year has pleasantly surprised policymakers.

Having jumped 39% year-on-year to a record $8.9 billion in FY19, electronics exports surged 28% y-o-y in April to $715 million and an impressive 51% in May to $911 million, according to “quick estimates” by the commerce ministry. In contrast, total goods exports grew just 0.6% in April and 3.9% in May.

Exports of telecom instruments, including mobile phones, jumped almost 70% to $195.3 million in April (up to which segregated data are available), while electronics instruments saw an over 27% rise to $228.3 million — albeit on low bases.

“The electronics segment is turning out to be one of the biggest drivers of our merchandise export growth, as far as high-value categories are concerned. It could be a success story of Make in India, as local assembly/production has gone up, leading to higher exports,” a senior commerce ministry official told FE.

For instance, Samsung last year expanded its mobile phone factory in Noida, touted to be the world’s largest, to double its capacity to make cell phones from 68 million units to 120 million units a year, in a phase-wise expansion that will be completed by 2020.

Around 30% of these phones are targeted to be exported, according to a senior industry executive. Although it’s still time before Samsung is able to ship out the targeted 30%, a substantial number of phones, no doubt, is being exported. However, local value addition still remains low, as most of the components are imported in completely or semi knocked-down conditions and are shipped out after assembly here, according to industry executives.

Importantly, the surge in electronics imports — the largest contributor to the country’s trade deficit after petroleum in FY19 — lost some pace this fiscal, albeit on a high base. Such imports rose 4% y-o-y in April to $4.3 billion before contracting 3.2% to $4.8 billion in May. In FY19, electronics imports had scaled a record peak of around $56 billion.

Analysts have pointed out that the nature of electronics imports, especially in the mobile phone segment, is changing. Purchases of components from overseas for local assembly/manufacturing are rising at a faster pace than those of completely-built units (CBUs).

Telecom instruments made up for roughly a third of overall electronics imports in FY19, followed by electronic components (28%), computer hardware and peripherals (16%), electronic instruments (14%) and consumer electronics (9%).

In FY19, exports of telecom instruments (including mobile phones) had jumped a massive 125% year-on-year to $2.5 billion — the highest since FY14, just before the Nokia plant closure — and emerged as the largest segment within the electronics exports category. However, as has been pointed out by experts, such exports are still far below potential. In fact, from $3.06 billion in FY14, telecom instrument exports crashed to just $1.07 billion in FY15, mainly due to the Nokia plant closure (in October 2014), show the DGCIS data.

According to an ICEA-McKinsey report, the latest resurgence in mobile manufacturing was built on the back of strong domestic demand, with the introduction of the Phased Manufacturing Programme encouraging import substitution. Between 2014 and 2017, the Indian smartphone market grew over 37% in value per annum, from $9 billion to $22 billion. In volume term, sales of smartphones rose from 70 million units in 2014 to 150 million units in 2017.

Pankaj Mohindroo, chairman of the India Cellular & Electronics Association, said despite the recent spurt in exports, India’s share in global electronics trade is less than even 1%. Our electronics exports this fiscal may jump by 70-100% only if export incentives under the Merchandise Exports from India Scheme (MEIS) continues or a suitable alternative is implemented. (MEIS and other export subsidy schemes have been challenged at the WTO).

Source: financialexpress.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 16-07-2019
Notification No:10
Amendment in appointing a new Statistics Office under Collection of Statistics Act 2008

Date: 16-07-2019
Circular No 19/2019-Customs
Implementation of PGA eSanchit- Paperless Porcessing under SWIFT- Uploading of Licenses/ Permits/ Ceritificates/ Other Authorizations (LPCOs) by PGAS - reg.

Date: 15-07-2019
Notification No. 51/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg

Date: 12-07-2019
ECA Circular No. 26/2015-20
Action for recovery of Penalty, Pending Appeals/Reviews

Date: 12-07-2019
Notification No. 50/2019- Customs (N.T.)
Amendment to the Notification No. 63/1994-Customs (N.T) dated 21st November, 1994, by notifying the pipeline of M/s Indian Oil Corporation Limited connecting Barauni, Patna, Motihari, Nonea in India to Amlekhgunj in Nepal as additional route for Raxaul LCS

Date: 12-07-2019
No. 27/2019-Customs (ADD)
Seeks to extend levy of anti-dumping duty till 27.10.2019, on imports of " Paracetamol" originating in or exported from china PR, extended vide notification No. 39/2018 Customs (ADD), dated the 20th August, 2018, in pursuance of order of Hon'ble High Court of Gujarat in the matter of SCA 5278/2019.

Date: 11-07-2019
A.P. (DIR Series) Circular No.2
Exim Bank's Government of India supported Line of Credit of USD 24.50 million to the Government of the Republic of Senegal

Date: 11-07-2019
A.P. (DIR Series) Circular No.1
Exim Bank's Government of India supported Line of Credit of USD 100 million to the Government of Independent State of Papua New Guinea

Date: 09-07-2019
Trade Notice No. 25/2019-20
Import of 4 lakh MT of feed grade Maize (dent corn) under TRQ allowed

Date: 09-07-2019
Notification No. 49/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver - Reg

Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001