Mumbai: Fears of a recession have resurfaced in the United States, the world's largest economy, and Germany, the largest economy in Europe. Recent employment data in the US fell short of expectations, reigniting concerns of an economic downturn. As a result, global stock markets experienced a significant drop on Monday. Meanwhile, the German economy unexpectedly slowed in the second quarter, with GDP shrinking by 0.1% compared to the first quarter. A recession is typically defined as two consecutive quarters of economic decline. Additionally, China's economy, which has driven global growth for nearly two decades, is facing multiple challenges. Amidst these global issues, India's economy continues to be the fastest-growing in the world.
In the June quarter, India's electronics exports saw a significant increase. The exports rose by 22 percent, reaching Rs.8.44 billion in the first quarter of this financial year compared to the previous year, largely due to a surge in Apple iPhone exports. Electronics have now become India's third-largest export category, following engineering goods and petroleum products. In the first quarter of the previous financial year, India exported electronics worth $6.94 billion. This year, mobile phone exports totaled $4.8 billion in the June quarter, accounting for 57 percent of total electronics exports. During this period, Apple exported iPhones worth $3.5 billion from India.
Electronics Export
According to government data, mobile exports surged by 30 percent in the June quarter compared to the previous year, with iPhone exports alone increasing by $900 million. This boost follows the introduction of government incentives for smartphone production. Before the scheme's launch in April 2020, mobile phone exports were valued at $2.9 billion in the 2019-20 financial year. Previously, mobile phones ranked 14th among India's exports. However, in fiscal 2024, India exported smartphones worth $15.6 billion, placing them among the top exports after automotive diesel, diamonds, and aviation turbine fuel. As a result, India's total electronics exports are projected to reach $29.1 billion in FY 2024.
