India imported nearly $40 billion worth of electronic components in FY2025-26, highlighting the country’s continued dependence on overseas supply chains even as domestic electronics manufacturing expands, according to data from CRISIL.
Electronic products remained among India’s top three most import-intensive manufacturing sectors, with imports accounting for about 29.8% of total supply. Electronic components, including integrated circuits and semiconductors, represented the largest share of net electronics imports by value during FY26.
According to the CRISIL data, electronic integrated circuits accounted for around $30 billion of imports. Other major categories included records and tapes at $5.3 billion, semiconductors at $4.9 billion, electric accumulators at $4.9 billion and electrical circuit apparatus at $2.1 billion.
The figures underline a key challenge for India’s rapidly expanding electronics manufacturing industry. While the country has made significant progress in assembling and exporting finished electronic products, domestic production of critical components such as chips, semiconductors and other sophisticated inputs remains comparatively limited.
India’s import dependence also creates exposure to global supply-chain disruptions, geopolitical tensions, trade restrictions and fluctuations in freight and input costs. CRISIL has warned that dependence on critical imported products can create supply shocks that may simultaneously affect economic growth and inflation.
The government is attempting to address the gap through incentives aimed at developing a domestic component ecosystem. Most recently, 31 proposals involving investments of ₹7,877 crore were approved under the Electronics Component Manufacturing Scheme (ECMS), targeting production of critical components within India.
Reducing import dependence will require India to move beyond final assembly and develop greater capabilities in semiconductors, electronic components, batteries, circuit equipment and other upstream technologies. Building domestic supplier networks could also improve resilience and increase the local value added in exported electronics.
The challenge extends beyond electronics. CRISIL data indicates relatively high import dependence for several industrial inputs, including electrical cables and wires, organic chemicals, batteries and plastic products. Electronics and pharmaceuticals are among the sectors most exposed to imported inputs.
For India’s logistics and manufacturing sectors, the trend means continued demand for international movement of high-value electronic components while domestic capacity is being built. At the same time, developing local component manufacturing could gradually change cargo flows and strengthen India’s position in global electronics supply chains.
With electronics exports expanding rapidly, policymakers are now seeking to ensure that the next phase of growth is driven not only by finished-product assembly but also by deeper domestic manufacturing and component production.