CHENNAI: As India intensifies domestic production of electronic products, data showed that the country’s import dependence on electronic components has gone up substantially.
Data from CRISIL Ltd showed that India imported $30 billion worth of electronic integrated circuits, followed by records & tapes ($5.3 billion), semiconductors and electric accumulators ($4.9 billion each), electric circuit apparatus ($2.1 billion) in FY26.
The data showed that electronic products remained among the top three import-intensive manufacturing industries, importing 29.8% of total supply. This dependence is driven primarily by electronic components. According to official trade statistics, electronic components, including chips and semiconductors, accounted for the highest net imports by value among all electronics imports in fiscal 2026.
The report also added that India’s dependence on rare earth minerals is currently indirect because the country largely imports finished components. "However, as domestic manufacturing of components expands, direct dependence on semiconductors and critical minerals could rise unless domestic production scales up accordingly," the report said.
The report also said that because of rising geopolitical tensions and trade protectionism, dependence on critical products risks creating supply shocks, which could simultaneously weigh on growth and fuel inflation. “Building resilience, therefore, requires diversifying import sources, strengthening strategic reserves, particularly energy, and expanding domestic production capacity wherever feasible.”
The report also mentioned that among inputs, import dependence is high for electrical cables and wires (36.9%), organic chemicals (36.5%), batteries (29.7%), and plastic products (23.9%).
On the other hand, dependence is relatively low for iron and steel (6%), construction inputs (9%), rubber products (12.3%). Sectors most exposed to imported inputs include electronics and pharmaceuticals.