Why in the news? 

Nearly 40% of India’s smartphone shipments over the past two fiscal years originated from a single district Kancheepuram.

Context 

• In FY23, Tamil Nadu emerged as India’s foremost exporter of electronic goods, contributing 30% to the country’s total electronic goods exports in FY24.
• Historically, the state lagged behind Uttar Pradesh and Karnataka in this sector until FY22.
• However, in recent years, Tamil Nadu has experienced consistent growth in electronic goods exports, unlike other states where figures have either declined or remained static.

 Chart 1 shows the electronic goods exported from Tamil Nadu in $ billion, year-wise.

• Between April 2023 and January 2024, Tamil Nadu exported electronic goods valued at over $7.4 billion.

Chart 2 shows the exports of electronic goods of the top five States in India in $ billion, year-wise

• In FY24, Tamil Nadu’s exports exceeded the combined exports of Uttar Pradesh and Karnataka, which totaled $6.7 billion during that period.
• Uttar Pradesh and Karnataka were ranked second and third, respectively, in terms of electronic goods exports.
• Gujarat and Maharashtra, also among the top five exporting states, have experienced stagnant growth in recent years.

Chart 3 shows the commodity wise share in total exports from India for FY24 (till February) in $ billion

• Engineering goods were the dominant category of exports from India during the specified period, with a total value of $98 billion.
• Petroleum products followed closely behind, with exports valued at $78 billion.
• Gems and jewellery constituted another significant export category, with a total export value of $30 billion.
• Electronics goods were also notable, although they ranked lower compared to other categories, with exports totaling $25 billion. In FY18, electronics goods were not among the top 10 most exported commodities from India.

 Biggest markets

• Top most importor of India’s Electronic goods: The United States and the United Arab Emirates (UAE) are the largest markets for India’s electronic goods export. In FY24 (up to February), the U.S. accounted for approximately 35% of India’s electronic goods exports, amounting to $8.7 billion, while the UAE accounted for 12% with $3 billion.
• Other countries share:The Netherlands and the United Kingdom (U.K.) each held a share of about 5% in India’s electronic goods exports.
• The primary destination : Since FY21, the United States has consistently been the primary destination for India’s electronics exports, with its share increasing significantly in recent years.

Conclusion

Tamil Nadu’s emergence as a key electronics exporter, with 30% of India’s exports, is highlighted. Kancheepuram district’s significant role, alongside Tamil Nadu’s surpassing of Uttar Pradesh and Karnataka, underscores its growth in electronic goods exports.

Mains PYQ

Q  Can the strategy of regional-resource based manufacturing help in promoting employment in India? (UPSC IAS/2019) 

Q Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.(UPSC IAS/2017)

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