New Delhi
India’s domestic electronic manufacturing services (EMS) market is expected to grow at an impressive 32% compound annual growth rate (CAGR) from FY22 to FY27, expanding from $17.5 billion in FY22 to $72.2 billion by 2027, according to a recent report.
This growth is supported by robust government initiatives, including production-linked incentive (PLI) schemes and the Semicon India program, designed to boost electronic manufacturing in the country. The government has also reopened the PLI scheme for white goods, aiming to attract more investment in the sector.
The report from Motilal Oswal Financial Services highlights that, while there has been significant progress in electronic production, component manufacturing in India still lags due to the need for high initial capital investment and longer timeframes from investment to production. The industry is calling for additional government initiatives to strengthen this aspect of the manufacturing ecosystem.
Niti Aayog has proposed several measures to enhance India’s component manufacturing capabilities and its role in global value chains. These include fiscal incentives, support for research and development, tariff simplification, and the development of industrial infrastructure.
Companies like Dixon Technologies and Amber Enterprises have emerged as market leaders in their segments and are now focusing on expanding into new areas and integrating backward.
India’s electronics production surged from $48 billion in FY17 to $101 billion in FY23. By FY2030, the country’s electronic manufacturing capacity is expected to reach $500 billion, with significant investments planned to enhance the component ecosystem.
