India’s Electronics Exports to China Surge 40% as PCBA Shipments Skyrocket to $1.5 Billion
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A profound structural transition is reshaping the historical trade dynamic between India and China, with official commerce data revealing that Indian outbound shipments to China surged by nearly 40 percent in the five months leading up to August. Historically defined by massive import inflows of finished Chinese hardware, the bilateral ledger is witnessing an unexpected pivot led primarily by electronics and precision engineering goods. While economists note this sharp uptick originates from a relatively modest base, the expansion is accelerated by global artificial intelligence infrastructure rollouts, extensive data center construction, and a strategic realignment wherein Chinese high-tech manufacturers are actively outsourcing intermediate electronic sub-assemblies to competitive Indian production lines.
PCBA Shipments Jump 40-Fold: China Emerges as India's Single Largest Electronics Buyer
The clearest indicator of this structural evolution lies in the explosive trajectory of Printed Circuit Board Assembly (PCBA) trade flows. India’s PCBA exports to China recorded a monumental 40-fold leap in fiscal year 2025-26, soaring to $1.5 billion compared to a modest $36 million registered just twelve months prior. This specific corridor accounted for nearly 80 percent of India’s overall $1.9 billion worldwide PCBA export volume, which itself expanded over 20-fold year-on-year. Analysts emphasize that as Chinese conglomerates elevate their core capabilities into high-margin segments—such as advanced semiconductor fabrication, AI accelerators, and telecom switches—they are increasingly sourcing intermediate board-level assemblies from Indian Electronics Manufacturing Services (EMS) corridors to optimize operational efficiency.
Policy Push to Production Powerhouse: ₹40,000 Crore Scheme Propels Exports to ₹4.24 Trillion
Complementing shifts in global supply chains, India’s domestic manufacturing matrix has transitioned decisively beyond basic smartphone assembly toward deep component indigenization. Backing this shift, the central government expanded the budgetary outlay of the Electronics Components Manufacturing Scheme from ₹22,919 crore to ₹40,000 crore, unlocking ₹69,548 crore in cumulative private investments across 106 approved industrial projects, with 38 advanced plants already fully operational or nearing commissioning. The sustained policy push has yielded exponential growth across the sector, with nationwide electronics production projected to climb from ₹1.9 trillion in 2014-15 to an impressive ₹13.11 trillion in 2025-26, while total sectoral exports expanded from roughly ₹38,000 crore to ₹4.24 trillion over the same decade-long transformational period.
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