Electronics exports increased 11.62% year-on-year in May to $5.09 billion despite the supply chain disruption caused by the US-Iran war, showed official figures released on Tuesday. While shipments to the United Arab Emirates (UAE) slowed, shifting trade flows towards the United States pushed up cumulative electronics exports 24.4% to $10.27 billion in the first two months of 2026-27.
Latest data from the Commerce Department showed that the US accounted for $2.93 billion or 57.5% of all electronics exports as of April. Within this, $2.43 billion worth of smartphone shipments anchored the growth. Overall, smartphone consignments rose by 47% to $3.42 billion in April.
Concurrently, the share of electronic exports to the UAE, which has earlier been the second-largest electronics export market for India, continued its downward trajectory. The UAE accounted for $331 million or just 6.41% of India's electronics exports in April.
The figures signified a sharp contraction from 2025-26, when the premier transshipment hub was the destination for $5.3 billion or 11.03% of India's total electronics exports. The UAE was the second-largest buyer of Indian-made smartphones ($4.15 billion), the top destination for computer hardware ($501 million) and the third-largest importer of electronic components ($253 million), official data showed.
“Shipping has faced continuous challenges. Most of India’s electronics exports take place by air. But logistical challenges have remained,” said an official, who did not wish to be identified.
Consignments to West Asia are shipped over Iranian airspace or near its territorial waters in the restive Strait of Hormuz in the Persian Gulf, all of which have remained heavily restricted since the US-Israel strikes against Iran began on February 28.
India's third largest trading partner globally, and second-biggest export market for years now, the UAE faced direct impact of the conflict, with key infrastructure coming under attack from Iranian missiles and industrial estates facing disruption.
In 2025-26, Israel was the largest destination for India’s consumer electronics exports, accounting for $103.13 million or 13.33% of such shipments from the country. In April, however, this key category, which includes transmission equipment and printed circuit boards, saw shipments to Israel fall 40% year-on-year, while exports to the US surged 65%.
