📊Executive Summary

India's electronic component exports have declined by 16% to $1.34 billion in the June quarter, primarily due to severe shortages of Printed Circuit Boards (PCBs) and increased tariffs imposed by the US. The PCB shortage is exacerbated by a global shift in demand towards high-margin AI servers, which are consuming a significant portion of PCB manufacturing capacity. Additionally, the cost of raw materials, particularly copper-clad laminates, has surged by 300% over the past year, putting pressure on manufacturers to either absorb costs or pass them on to customers. The US market, historically a major buyer of Indian components, has seen a 51% drop in shipments, reducing its share of India's exports from 50% to 28%. Industry experts warn that continued PCB shortages could lead to a 30-40% reduction in domestic electronics production within three months....