‘Electronic manufacturing services market in India may grow to $150 bn by FY30’

The electronics manufacturing services market may jump over threefold to USD 150 billion by 2030, driven by domestic demand, policy support and companies’ strategy to diversify their supply chains beyond China, a KPMG report said on Wednesday.

India’s Electronics manufacturing services (EMS) market has scaled rapidly to around USD 40-45 billion in FY25, a KPMG report titled India’s Electronic Manufacturing Services (EMS) opportunity: From assembly hub to integrated manufacturing powerhouse, said.

“India’s EMS market has scaled rapidly to around USD 40-45 billion in FY25 and is expected to surpass around USD 150 billion by FY30, supported by exports, policy incentives and supply chain diversification,” the report said. According to the report, India currently accounts for approximately 5–6 per cent of global EMS manufacturing, indicating significant headroom for growth.

Globally, electronics manufacturing is moving from cost optimisation to resilience-led, multi-node supply chains, with EMS players evolving into strategic partners for OEMs. The move provides a significant, but time-bound, opportunity for India.

“While India leads in high-volume assembly, particularly in mobile and consumer electronics, its presence in higher-value areas, such as design, components and IP ownership, remains limited.

“Value creation increases significantly with deeper integration, from assembly to design-led and system-level capabilities, making capability building across engineering, supply chains and product development a strategic priority,” the report said.

High import dependency typically ranges from around 80 to over 95 per cent across critical components, and continues to limit domestic value addition and ecosystem maturity, it added.

“Policy interventions have been a critical growth enabler, with around USD 19.5 billion in cumulative incentives aimed at strengthening the electronics manufacturing ecosystem.

“Sustained competitiveness will depend on transitioning from capacity-led growth to capability-led growth, including localisation, certification depth, and design integration,” the report said. The next five to ten years will be decisive for India, it noted.