India’s electronics manufacturing services (EMS) sector is entering a new phase as rising exports, government incentives and the China+1 strategy drive manufacturing investments.
India’s electronics manufacturing services (EMS) market is expected to grow sharply as global electronics companies diversify their supply chains and manufacturers expand capacity in the country. According to KPMG, the Indian EMS market reached approximately ₹3.38–3.81 trillion in FY25 and is projected to cross ₹12.68 trillion by FY30.
India has emerged as the world’s second-largest mobile phone manufacturer by volume and an increasingly important production base for global technology companies. Smartphone exports are also rising, with Apple and other global electronics companies and their suppliers increasingly using Indian plants as export hubs.
The EMS sector recorded a revenue compound annual growth rate (CAGR) of around 24 per cent between FY19 and FY24 and is estimated to grow at around 27 per cent between FY24 and FY29, supported by supply-chain diversification and the China+1 strategy.
Government programmes including the Production-Linked Incentive (PLI) scheme, SPECS, EMC 2.0, India Semiconductor Mission (ISM) and Electronics Components Manufacturing Scheme (ECMS) have helped attract investments and expand India’s electronics ecosystem.
The broader electronics manufacturing sector has also expanded significantly, with production rising from around ₹1.9 trillion in FY15 to ₹11.3 trillion in FY25. Electronics have consequently moved from the seventh-largest export segment in FY22 to one of India’s leading export categories.
Components remain a challenge
Despite this growth, India accounts for only around 5–6 per cent of global EMS manufacturing output. The country has developed strong capabilities in smartphone assembly and PCBA manufacturing, but remains dependent on imported components, particularly from China and Hong Kong.
The next phase of growth is therefore expected to focus on increasing domestic value addition through component manufacturing, semiconductor fabrication, packaging and design.
India is targeting a ₹42.28 trillion electronics ecosystem by 2030, including ₹33.82 trillion in manufactured electronics and ₹8.46 trillion in components.
Achieving this target will require India to move beyond assembly-led manufacturing and diversify into semiconductor design and packaging, IT hardware, telecommunications, automotive and medical electronics. As global supply chains continue to diversify, strengthening domestic components and higher-value manufacturing will be key to India capturing a larger share of the global electronics value chain.
