India’s Electronics Manufacturing Services Sector Projected to Hit ₹6 Lakh Crore by FY27

New Delhi, Dec 2 (NationPress) Fueled by government initiatives such as the Production-Linked Incentive (PLI) scheme, the electronics manufacturing services (EMS) sector is anticipated to escalate to ₹6 lakh crore by FY27 from ₹1.46 lakh crore in FY22, showing positive growth over the short to medium term, as indicated by a recent report.

The electronics manufacturing sector is poised for a remarkable transformation, expected to expand at a strong CAGR of 26 percent from 2023 to 2030, reaching $500 billion.

India is increasingly becoming a favored global hub for electronics manufacturing due to heightened assembly activities and a surge in demand within the EMS sector, especially in the mobile phones, automotive, and industrial categories, according to a report by Motilal Oswal Wealth Management Ltd.

Supportive government initiatives like the PLI schemes and the Semicon India program, growing domestic demand, and a strong push for self-reliance are further enhancing these opportunities.

Motilal Oswal Wealth Management has curated a portfolio of five companies that stand to gain from significant growth prospects in the EMS domain.

CG Power specializes in the design, manufacturing, and marketing of products related to power generation, transmission, and distribution, producing voltage motors, circuit breakers, switchgears, and power monitors.

Another key player is Dixon Technologies, which is experiencing substantial volume growth from existing mobile customers.

“We anticipate Dixon to maintain its market-leading position across various segments, expand into new sectors, enhance backward integration, and improve the ODM mix,” the report noted.

Kaynes Technology is a leading end-to-end and IoT-enabled integrated electronics manufacturer, benefiting from a healthy order book growth trajectory and improved profit margins.

The company is rapidly expanding its smart meter operations, expecting to achieve $1 billion in revenue by FY28 and triple its revenue by FY29.

Amber Enterprises is onboarding new clients across sectors such as automotive, defense, medical, and telecom, aiming to accelerate the growth of its electronics division.

Syrma SGS, which operates in EMS, caters to a variety of end-use industries including automotive, healthcare, consumer products, industrial, IT, and railways. It has recently received PLI approvals in med-tech (Cancer Care and Anesthetic Devices), set to commence from FY26, as per the report.

In the meantime, the government is set to announce incentives worth billions of dollars for domestic firms to manufacture deeper components. The forthcoming scheme is expected to incentivize the production of critical components like printed circuit boards (PCBs) for devices such as laptops and promote the development of more localized supply chains, as reported.