Electronics alone account for $69 billion of India’s trade deficit

India's non-petroleum trade deficit has overtaken its petroleum deficit for two consecutive years, with electronics components driving a large share of the gap. In 2025-26, non-petroleum products accounted for $214 billion of the total $334 billion trade deficit, while petroleum contributed $120 billion. The electronics segment alone recorded a deficit of nearly $69 billion, equivalent to 20 per cent of the total deficit and 32 per cent of the non-petroleum deficit, according to data analysed by Crisil and the Global Trade Research Initiative.

Mining remains India's most import-dependent sector, with imports at 35.4 per cent of total supply, largely due to crude oil, where India meets 85-90 per cent of domestic demand through imports. In manufacturing, Crisil's analysis of supply-use tables found gems and jewellery the most import-heavy sub-sector at 56.5 per cent, followed by electronics at 29.8 per cent. Although the production-linked incentive scheme helped reduce imports of finished mobile phones, Crisil said domestic value addition in electronics has risen only to around 20 per cent, meaning the industry remains focused on assembly.

Key component imports tell the story: electronic integrated circuits alone required $30 billion in net imports in 2023-24, while semiconductors and electric accumulators each stood at $4.9 billion. GTRI founder Ajay Srivastava said domestic manufacturing has not expanded or deepened fast enough to meet demand, leaving India reliant on foreign technology, components and raw materials.