Electronics Manufacturing Services in India: Industry Growth, Opportunities and Market Entry Strategies
India's electronics manufacturing industry is evolving beyond finished-product assembly towards a broader manufacturing ecosystem encompassing component production, engineering, product testing and supply-chain integration. At the centre of this transformation is the Electronics Manufacturing Services (EMS) sector, which enables electronics brands and original equipment manufacturers to outsource some or all of their manufacturing requirements to specialised service providers.
Driven by domestic demand, policy support and the diversification of global supply chains, India's EMS industry is attracting increasing attention from manufacturers, technology companies and investors. The sector presents opportunities across consumer electronics, telecommunications, automotive systems, industrial equipment and other applications.
However, as manufacturing capacity expands, businesses must look beyond headline growth figures to understand the competitive landscape, customer requirements and investment considerations that shape individual market opportunities.
India's Electronics Manufacturing Services Industry Is Expanding
The growth of India's electronics manufacturing ecosystem is creating a stronger foundation for EMS providers.
According to the Government of India's Ministry of Electronics and Information Technology, electronics production increased from ?1.9 lakh crore in FY 2014–15 to ?13.11 lakh crore in FY 2025–26. Electronics exports rose from approximately ?38,000 crore to ?4.24 lakh crore over the same period.
This expansion creates opportunities for companies providing contract manufacturing, electronic assembly, testing and related production services. As more products are manufactured domestically, brands and equipment manufacturers may require partners with the capacity, quality systems and technical capabilities to support production at scale.
A June 2026 report by KPMG India, covered by The Economic Times, estimated that India's EMS market could grow from approximately US$40–45 billion in 2025 to more than US$150 billion by FY 2030. This is a forecast, not a realised market value, and its outcome depends on factors including investment, domestic demand, exports and the industry's ability to expand into higher-value manufacturing.
The report also highlighted a key strategic challenge: moving beyond assembly-led growth towards stronger capabilities in design, engineering and component manufacturing.
Sources: Ministry of Electronics and Information Technology; KPMG India report dated 8 June 2026, reported by The Economic Times.
What Is Driving EMS Growth in India?
- Rising Electronics Production
The expanding domestic electronics industry is creating demand for manufacturing partners capable of producing finished devices, subassemblies and electronic systems.
EMS providers can offer services such as printed circuit board assembly, component sourcing, product integration, testing and manufacturing process management. The scope varies according to the provider's capabilities and the customer's requirements.
For businesses entering this market, identifying the product categories and customer segments that require outsourced manufacturing is an important starting point.
- Global Supply-Chain Diversification
Manufacturers are reassessing supply chains to improve resilience, diversify production locations and manage geopolitical and operational risks.
India's manufacturing base, domestic demand and policy support make it a potential destination for companies evaluating alternative or additional production locations.
However, attracting outsourced manufacturing contracts requires more than competitive labour costs. Providers must demonstrate production reliability, quality consistency, cost efficiency, technical capability and the ability to meet delivery commitments.
- Government Support for Electronics Manufacturing
The Government of India has introduced initiatives to encourage domestic electronics manufacturing and strengthen the component supply chain.
The Electronics Component Manufacturing Scheme (ECMS), notified in April 2025, supports the development of domestic capabilities across electronic components, subassemblies and manufacturing equipment.
In February 2026, the Union Budget announced an increase in the scheme's outlay to ?40,000 crore. The initiative is relevant to the wider EMS ecosystem because a stronger domestic component base can improve sourcing options and support the development of more integrated manufacturing operations.
The scheme's eligibility and incentives depend on its specific provisions. EMS companies should assess the applicable guidelines rather than assume that every manufacturing activity automatically qualifies.
Source: Press Information Bureau, Government of India, 3 February 2026.
Key Business Opportunities Across the EMS Value Chain
India's EMS sector includes several distinct business models. The most suitable opportunity depends on a company's technical capabilities, investment capacity and target customers.
PCB assembly and electronic subassemblies: Businesses can provide surface-mount technology, through-hole assembly, soldering, inspection and testing services for electronic products. Customer requirements and production complexity vary considerably by application.
Consumer electronics manufacturing: EMS providers can manufacture or assemble products and subassemblies for smartphones, computers, home electronics and other consumer devices. These segments may offer production scale, but competition, cost pressure and customer concentration require careful assessment.
Automotive and industrial electronics: Automotive systems, industrial automation and specialised equipment can require reliable electronic assemblies, control boards and power electronics. These markets may involve more demanding qualification, documentation and quality requirements.
Telecommunications and networking equipment: Manufacturing opportunities include electronic assemblies, networking devices and supporting equipment. Providers must assess technical specifications, customer procurement processes and relevant compliance requirements.
Engineering-led manufacturing services: Providers can differentiate themselves through design support, prototyping, testing, product industrialisation and manufacturing engineering. Such capabilities can help companies move beyond basic assembly, although the required investment and expertise depend on the services offered.
These categories should not be treated as interchangeable. Each has different demand drivers, production requirements, margins and barriers to entry.
Challenges Facing EMS Companies
Despite the industry's growth potential, EMS businesses face several commercial and operational challenges.
Competitive pricing: Customers often evaluate suppliers on total cost, quality and delivery performance. Manufacturers need a clear understanding of production economics and the competitive environment.
Working capital requirements: Procurement, inventory management and payment terms can create significant working capital needs, particularly for businesses producing at scale.
Customer concentration: Dependence on a small number of major customers can increase commercial risk. Diversification may require additional certifications, sales investment and manufacturing flexibility.
Technology and quality requirements: Different products demand different levels of process control, testing, traceability and engineering expertise. Providers must match their capabilities to their target markets.
Component availability: Supply-chain disruptions, imported input costs and supplier concentration can affect delivery schedules and margins.
Capacity utilisation: Investment in production equipment and facilities must be aligned with realistic demand expectations. Underutilised capacity can weaken the financial performance of a manufacturing project.
These factors make it essential to assess the commercial viability of a specific EMS business model before committing capital.
How Market Research Can Support EMS Market Entry
A structured market assessment can help prospective EMS providers identify the most suitable entry opportunities and understand the requirements for competing effectively.
The process begins with defining the intended service offering, target product categories and customer segments. Businesses can then assess demand, identify potential customers and examine the manufacturing capabilities already available in the market.
Competitive analysis helps establish how existing providers differentiate themselves, which industries they serve and where potential gaps may exist.
Location assessment can compare access to customers, suppliers, industrial infrastructure, logistics and skilled labour. Financial analysis can examine capital expenditure, operating costs, working capital, capacity utilisation and potential revenue scenarios.
Businesses should also review applicable registrations, factory and environmental requirements, product-specific compliance obligations and relevant government schemes.
The resulting research can help determine whether to establish a new facility, expand existing operations, specialise in a particular product category or pursue a partnership-led market entry.
OMR Global's Market Entry Blueprint for EMS Businesses
For companies exploring India's electronics manufacturing services industry, OMR Global's Market Entry Blueprint offers a structured approach to evaluating market entry and expansion opportunities.
The service combines market sizing, competitive analysis, location assessment, regulatory and licensing research, and government scheme guidance. Depending on the selected plan, it can also incorporate revenue projections, scenario analysis and risk considerations.
For EMS businesses, this research can help organise the information needed to evaluate target industries, potential customers, manufacturing locations and competitive positioning before committing significant resources.
Whether a company is considering PCB assembly, consumer electronics manufacturing, industrial electronics or a specialised contract manufacturing service, understanding the specific market opportunity is an important step towards developing an informed entry strategy.
Conclusion
India's expanding electronics manufacturing base is creating opportunities for EMS providers across consumer, industrial, automotive and telecommunications applications.
The next stage of development will depend not only on increasing manufacturing capacity but also on strengthening component sourcing, engineering, design and higher-value production capabilities.
For manufacturers and investors, the opportunity lies in identifying the right product segments, customers and operating model rather than relying solely on industry-wide growth projections.
Explore OMR Global's Market Entry Blueprint to assess your target market, evaluate competitors and develop a more informed market entry strategy.