HS 85 exports to ASEAN (USD MILLION) SOURCE: Tradestat, dept of commerce 1. Executive Summary 2. Introduction & Objective 3. ASEAN Electronics Market Snapshot 4. India-ASEAN Trade Position 5. Country-Wise Performance Analysis (Growth vs. Decline Markets) 6. Opportunities 7. Barriers to Entry 8. Policy Landscape (India + ASEAN FTA/RCEP context) 9. Recommendations 10. Conclusion & Annexures (data sources) HS 85 Highest in both export and import Electric machinery, equipment, and parts 26.1% (Proportion of total goods imports) 28.3% (Proportion of total goods exports) ASEAN— Country 2024-2025 2025-2026 growth BRUNEI 1.66 1.51 -9.27 CAMBODIA 6.22 8.98 44.42 INDONESIA 169.27 155.64 -8.05 LAO PD RP 0.41 3.58 774.64 Malaysia 171.01 231.32 35.27 Myanmar 20.31 39.52 94.54 Philippines 102.95 84.52 -17.91 Singapore 387.40 478.88 23.61 Thailand 199.67 245.49 22.95 Timor Leste 0.00 0.35 22,742.75 Vietnam 293.62 298.56 1.68 1352.52 1548.35 14.47 Total Elec export 44,049.59 53,976.30 Import- 104,824.72 22.54

2. Introduction & Objective Introduction ASEAN has emerged as a major global hub for electronics manufacturing and trade, supported by integrated production networks, strong regional trade linkages and increasing investment in electronics and ICT-related industries. In 2024, ASEAN's ICT goods trade reached US$983.1 billion, underlining the scale and strategic importance of the sector within the region. The continued development of electronics and technology-intensive manufacturing is strengthening ASEAN's position in global value chains and creating opportunities across components, electrical equipment, computing, communication and related product segments. For India, the growing scale and diversification of the ASEAN electronics ecosystem present an important avenue for expanding electronics exports and strengthening participation in regional supply chains. For India, the growing scale and diversification of the ASEAN electronics ecosystem presents an important avenue for expanding electronics exports and strengthening participation in regional supply chains. Objective The objective of this report is to assess the ASEAN electronics market and identify opportunities for Indian exporters by analysing the market structure and major product segments, examining country-wise growth and trade performance, evaluating India's existing position in the region, and assessing key market-access barriers and relevant policy factors. The analysis aims to identify high-potential ASEAN markets and product areas and provide practical recommendations for expanding India's electronics exports and participation in ASEAN value chains

3. ASEAN Electronics Market Snapshot 3.1 ASEAN Electronics Trade Overview ASEAN has emerged as a major global hub for the production and trade of electrical and electronic products, supported by integrated regional supply chains and strong two-way merchandise trade. In the ASEAN trade structure, HS 85 — Electrical machinery, equipment and parts — is the largest product category, accounting for 28.3% of total merchandise exports and 26.1% of total merchandise imports in 2024. This makes electrical and electronic products central to the region's overall merchandise trade. The latest ASEAN stats data also show the scale of the wider electronics ecosystem. ICT goods trade in ASEAN reached US$983.1 billion in 2024, up from US$838.7 billion in 2023. The expansion reflects the continued importance of electronics and ICT-related manufacturing and trade within the region. 3.2 Composition of ASEAN ICT Trade ASEAN's ICT trade is heavily concentrated in electronic components and equipment used

across regional and global production networks. In 2024, electronic components accounted for US$590.7 billion, making them by far the largest ICT trade category. This was followed by computers and ICT peripheral equipment at US$174.1 billion and communication equipment at US$144.4 billion. Consumer electronic equipment contributed US$43.1 billion, while miscellaneous ICT goods accounted for US$30.7 billion. 3.3 Key Market Insights The structure of ASEAN's electronics trade highlights the region's role as a major manufacturing and supply-chain hub, rather than solely a final-consumption market. The strong presence of electronic components, computers and communica067tion equipment within regional ICT trade reflects the depth of ASEAN's electronics ecosystem and its integration into global production networks. The scale and composition of trade indicate that opportunities in ASEAN extend across both intermediate components and finished electronics products, with individual member states playing different roles within the regional value chain 4. India-ASEAN Trade Position In 2025-26, India's electronics exports to ASEAN grew by 14.47%, rising from US$1,352.52 million to US$1,548.35 million. This is a healthy increase. However, India's electronics exports to the whole world grew even faster, by 22.54%, rising from US$44,049.59 million to US$53,976.30 million. Because ASEAN grew more slowly than the rest of the world, ASEAN's share of India's total electronics exports became smaller — falling from 3.07% to 2.87%. As shown in Section 3, ASEAN is one of the biggest hubs for electronics manufacturing and trade in the world. Yet it still takes less than 3% of India's electronics exports. In simple terms, ASEAN is not yet a major market for India, even though India's exports are growing well elsewhere. This makes ASEAN a market with strong future potential, rather than one that is already fully used. Metric (USD million unless %) 2024-25 2025-26 Change Electronics Exports, India → ASEAN 1,352.52 1,548.35 +14.47% India's Total Electronics Exports (World) 44,049.59 53,976.30 +22.54% ASEAN's Share of India's Total Exports 3.07% 2.87% -0.20 pp Looking at individual countries, most of India's electronics exports to ASEAN go to just a few markets. Singapore, Vietnam, Thailand and Malaysia together made up about 81% of all electronics exports to ASEAN in 2025-26, with Singapore alone taking nearly one-third of the total. This shows that India's electronics trade with ASEAN depends heavily on a small number of countries. At the same time, some smaller markets grew very quickly, although from a very low starting point — Timor-Leste, Lao PDR, Myanmar and Cambodia all saw fast growth. On the other hand, exports fell in Indonesia, the Philippines and Brunei. Indonesia and the Philippines are large economies with big populations, so a fall in exports to these two countries is worth watching closely and understanding further.

Figure 1: India's electronics exports to ASEAN countries, 2024-25 vs 2025-26 (USD million) Key Takeaways ● India's electronics exports to ASEAN grew 14.47%, slower than India's overall export growth of 22.54%. So, ASEAN's share of India's total exports is going down, not up. ● ASEAN takes less than 3% of India's total electronics exports, even though it is one of the world's biggest electronics trade hubs. This points to strong room for growth (see Section 6, Opportunities). ● Four countries — Singapore, Vietnam, Thailand and Malaysia — make up about 81% of India's electronics exports to ASEAN, showing heavy reliance on a few markets. ● Exports fell in Indonesia, the Philippines and Brunei, while smaller markets such as Timor-Leste, Lao PDR, Myanmar and Cambodia grew fast from a low base (explored further in Section 5). ● India's overall electronics trade has a large deficit, but ASEAN-specific import data is missing. This gap should be filled for a complete trade picture. 5. Country-Wise Performance Analysis (Growth vs. Decline Markets) Out of the 11 ASEAN countries, 8 showed growth and 3 showed a decline in 2025-26. Myanmar, Cambodia and Malaysia had the strongest genuine growth, each rising by more than 35% from a reasonable base. Singapore and Thailand also grew steadily, at around 23%. Vietnam, despite being India's second-largest ASEAN market, grew by just 1.68% — almost flat — which is worth watching, since Vietnam is a major electronics manufacturing base in the region. Three markets declined: the Philippines (-17.91%), Brunei (-9.27%) and Indonesia (-8.05%). Indonesia and the Philippines are large, populous economies, so a fall in exports to these two countries deserves closer attention — it may point to rising local competition, changing demand, or market-access issues that this report explores further in Sections 7 and 8. Country 2024-25 (US$M) 2025-26 (US$M) Growth (%) Category Singapore 387.40 478.88 +23.61 Growth Vietnam 293.62 298.56 +1.68 Flat Thailand 199.67 245.49 +22.95 Growth Malaysia 171.01 231.32 +35.27 Growth Indonesia 169.27 155.64 -8.05 Decline Philippines 102.95 84.52 -17.91 Decline Myanmar 20.31 39.52 +94.54 Growth Cambodia 6.22 8.98 +44.42 Growth Lao PDR 0.41 3.58 +774.64* Growth

Brunei 1.66 1.51 -9.27 Decline Timor-Leste 0.00 0.35 n/m* Growth ASEAN Total 1,352.52 1548.35 14.47 Growth Source: Tradestat, dept of commerce Figure 2: Export growth by ASEAN market, 2024- 25 to 2025-26 (excludes Lao PDR and Timor-Leste — see note above) Key Takeaways ● 8 of 11 ASEAN markets grew in 2025-26; only 3 (Philippines, Brunei, Indonesia) declined. ● Myanmar, Cambodia and Malaysia showed the strongest real growth, each above 35%. ● Vietnam, India's second-largest ASEAN market, was almost flat (+1.68%) — a market to watch closely. ● Falling exports to Indonesia and the Philippines matter more than the small decline percentages suggest, given the size of these two economies. ● Lao PDR and Timor-Leste show huge percentage growth, but only because they started from almost zero — the dollar amounts are still small. *Lao PDR and Timor-Leste show very large percentage growth, but this is because exports from these countries started from a very small base (close to zero in 2024-25). In dollar terms, the increase is small, so these two markets are not shown on the chart below to keep the scale readable for the other nine countries. 6. Opportunities Sections 3 to 5 show that ASEAN is a large, fast-growing electronics market where India has only a small foothold. This section looks at where that opportunity lies — first by market, then by specific product — before Section 7 looks at the barriers that stand in the way. Opportunity Area Why It Matters Target Markets Untapped Headroom ASEAN takes less than 3% of India's total electronics exports, despite being a global electronics hub All ASEAN markets Fast-Growing Markets Myanmar, Cambodia, Malaysia and Lao PDR all grew strongly (35% to over 90%) in 2025-26 Myanmar, Cambodia, Malaysia Recovering Large Markets Indonesia and the Philippines are large economies where India's exports fell but are also among the region's fastest-growing smartphone markets. Indonesia, Philippines Diversification Singapore, Vietnam, Thailand and Malaysia already account for 81% of India's ASEAN electronics exports. Smaller, underused markets It also helps to look beyond markets, at specific products. The table below matches India's strongest and fastest-growing electronics export categories with the parts of the ASEAN market most likely to want them. HS Code Product Why It's a Good Fit Best-Fit Markets

8517 Smartphones & telecom devices India's largest single electronics export category, worth about US$30 billion in 2025. Indonesia, the Philippines and Vietnam are among the region's fastest-growing smartphone markets. Indonesia, Philippines, Vietnam 8534 / 8517 Printed circuit boards (PCBs) India's PCB exports are rising fast — exports to China alone jumped roughly 40-fold to about US$1.5 billion in a single year. PCBs feed directly into ASEAN's largest trade segment, electronic components. Vietnam, Malaysia, Thailand 8542 Semiconductors & integrated circuits Electronic components make up ASEAN's biggest ICT trade segment, at US$590.7 billion (Section 3). India's new semiconductor plants, now coming online, open an early door into this segment. Singapore, Malaysia, Vietnam 8544 Insulated wires & cables A basic input needed by almost every electronics assembly line across ASEAN's manufacturing hubs. Vietnam, Thailand, Malaysia 8525 / 8529 Telecom transmission gear & TV/radio parts ASEAN countries are expanding 5G networks, which is raising demand for transmission and broadcasting equipment. Indonesia, Philippines, Thailand Note: The products above combine India's fastest-growing electronics export categories nationally with ASEAN's known demand patterns from Section 3