PCB crunch, US tariffs shrink Q1 electronic component exports
First-quarter electronic component exports shrank 16% year-on-year to $1.34 billion, while overall electronic goods exports increased 22.5%, latest data from the commerce department showed.
India's electronic component exports declined 16% year-over-year in the first quarter of 2023 to $1.34 billion, according to recent data from the commerce department. This decline was the only category within the broader $22 billion electronics export basket to register a decrease. Overall, electronic goods exports increased by 22.5% in the same period.
The country's nascent components segment has experienced three consecutive months of declining exports in FY27, marking a shift from the monthly growth trend observed in FY26. This decline occurred despite the government's efforts to encourage manufacturers to establish domestic upstream capacity. Officials cited several supply chain challenges, including the production of printed circuit boards (PCB), as well as significant drops in exports to the US, as primary reasons for the decrease.
PCBs, which form the physical foundation and electrical pathways for electronic components, have faced manufacturing difficulties due to material sourcing issues stemming from the Iran war. The government is closely monitoring the situation to prevent rising PCB prices from impacting overall electronics prices. The IPCA reported that the PCB industry is considering notifying the Centre, state governments, and banks that electronics production in India could drop by 30-40% within three months if the current supply shortages persist.
Key input material prices, such as copper-clad laminates (CCL), have surged over 300% in the past year, while other input prices have risen up to 200% in six months. The US accounted for 51% of India's component shipments in the first quarter, making it the largest market for this category. The US share in India's electronics component exports fell to 28% by June end from 50% a year ago due to heavy tariff barriers.
Assembled photovoltaic (PV) cells and light-emitting diodes (LEDs) were the most affected, with the high 50% import duty imposed by the Trump administration last year and anti-dumping and countervailing duty investigations against India being key factors.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
