India's printed circuit board exports to China have seen an extraordinary 40-fold increase to $1.5 billion in FY26, marking a significant reversal in trade dynamics as Beijing increasingly sources lower-value electronic assemblies from its southern neighbour.
Key Points
- India's PCB exports to China surged over 40-fold to $1.5 billion in FY26, accounting for nearly 80% of India's total PCB exports.
- This growth suggests China is increasingly sourcing simpler, lower-value electronic assemblies from India as it moves up the value chain in domestic manufacturing.
- The rise in PCB exports is attributed to India's maturing domestic market demand for PCBs and the growth of smaller players moving from assembly to manufacturing for export.
- Government initiatives like the Rs 22,919 crore electronics component manufacturing scheme and the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing are driving this growth.
- The overall success of PLI schemes has contributed to manufacturing's share in India's GDP reaching close to 16% in FY26, with smartphones becoming India's largest export item.
India's exports of printed circuit boards (PCBs) to China surged over 40-fold to $1.5 billion in FY26, suggesting that Beijing is increasingly sourcing simpler, lower-value electronic assemblies from its southern neighbour as it moves up the value chain at home.
Total PCB exports by India rose more than 20-fold in FY26 to $1.9 billion, commerce department data shows.
Nearly 80 per cent of that went to China alone, up from just $36 million in FY25.
Shifting Trade Dynamics
The numbers mark an unusual, though small reversal in a bilateral trade relationship long defined by India"s dependence on Chinese electronics components.
India imported $46.4 billion worth of electronics items from China in FY26, comprising 35 per cent of its total imports of $131.6 billion.
India"s exports to China grew around 37 per cent to $19.5 billion in FY26, leading to a bilateral trade deficit of $112.1 billion.
PCBs stood as the second largest shipped item to China after light naptha in FY26.
A senior official in the Ministry of Electronics and Information Technology said India"s domestic market demand for PCBs is now maturing.
"The simpler designs would find demand in mass markets like China, where production units may not find it cost-effective to manufacture the same product," he added.
Another official said that the rise in PCB exports could be chiefly due to the growth of smaller players who have moved from assembling these products to manufacturing them in small quantities for export.
Government Initiatives and Industry Growth
PCB manufacturing falls under the government"s Rs 22,919 crore electronics component manufacturing scheme which incentivises manufacturing of multi-layer PBCs, high-density interconnect PCB, copper clad laminates.
The first tranche of approved projects, worth Rs 5,500 crore and cleared in October 2025, is expected to meet all of India"s domestic copper clad laminate needs, 20 per cent of domestic PCB demand, and 15 per cent of camera module demand.
The beneficiaries are Kaynes Circuits India, Syrma Strategic Electronics, Ascent Circuits, and SRF Limited.
The PCB numbers sit alongside a broader smartphone export story.
The Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, launched in 2020 to boost domestic mobile phone manufacturing, has helped make smartphones India"s single largest export item with shipments growing 22 per cent to $29.4 billion in FY26.
"In recent years, India"s electronics sector has achieved extraordinary growth, emerging as the third largest and fastest-growing export category in 2024-25," the government said in an October 2025 statement, adding that ECMS is designed to build on that momentum.
Impact of PLI Schemes
The overall share of manufacturing in India"s GDP stands at close to 16 per cent as of FY26, aided by moderate-to-high success in the various PLI schemes.
Pankaj Mohindroo, chairman of domestic industry body India Cellular and Electronics Association, said that the data demonstrates that the various PLI schemes, supply chain diversification efforts and investments in electronics manufacturing are beginning to translate into deeper value addition and stronger participation in global electronics value chains.
"The exports are likely dominated by assembled boards used in smartphones, telecom equipment, consumer electronics and IT hardware.
"Beyond PCBs, India is also exporting a growing range of electronic modules and sub-assemblies, reflecting higher domestic value addition and stronger integration with global supply chains."
