Schedule a Call Back
India's electronic manufacturing services market to reach $72.2 billion by FY27
Industry News- Aug 21,24
Government initiatives such as production-linked incentive (PLI) schemes and the Semicon India programme are driving this growth.
The domestic electronic manufacturing services (EMS) market in India is projected to grow at a robust 32% compound annual growth rate (CAGR) from FY22 to FY27, reaching $72.2 billion by the end of this period, according to a recent report. This represents a significant increase from $17.5 billion in FY22.
Government initiatives such as production-linked incentive (PLI) schemes and the Semicon India programme are driving this growth. The government has also reopened the PLI scheme for white goods to attract further investment in domestic appliances.
The report by Motilal Oswal Financial Services highlights that while the growth in electronic manufacturing is strong, component manufacturing has lagged. This sector requires substantial initial capital expenditure and has a longer gestation period. Therefore, additional government measures are needed to support component manufacturing in India.
Niti Aayog has proposed several strategies to enhance component manufacturing and integrate India into global electronics value chains. These include fiscal incentives, R&D support, tariff simplification, infrastructure improvements, and technology transfer initiatives.
Companies like Dixon Technologies and Amber Enterprises have established leadership in the EMS sector and are focusing on expanding their market presence and backward integration. With increased government support, India's electronics production has grown from $48 billion in FY17 to $101 billion in FY23.
The country's electronic manufacturing capacity is expected to reach $500 billion by FY2030, comprising $350 billion in finished goods and $150 billion in components, signifying a major investment in the component ecosystem.
India hosts prominent players in the electronics value chain, including Foxconn, Dixon, Amber, Pegatron, Apple, Samsung, BoAt, and Atomberg.
(ET)
electronic
electronic manufacturing
Amber Enterprises
Dixon Technologies
Motilal Oswal Financial Services
Related Stories
Electrical & Electronics
India to introduce repairability index for electronics to combat e-waste
The Consumer Affairs Ministry is spearheading the creation of this index, which will evaluate products based on several key criteria.
Read moreElectrical & Electronics
Centre unveils $15 billion blueprint to establish India as a major chip hub
As part of the new blueprint, the government plans to reduce the capital expenditure subsidy for assembly and testing plants (ATMP/OSAT) from the current 50% to 30% for conventional packaging techno..
Read moreAuto & Auto Components
Evolution of India's EV charging infrastructure
The debate between EVs and gasoline vehicles often revolves around cost per kilometer, with EVs having a clear advantage.
Read moreRelated Products
78 Series Din Rail Terminal Blocks
ELECTRICAL & ELECTRONIC EQUIPMENT
Werner Electric Private Limited offers a wide range of 78 series din rail terminal blocks.
Mig Welding Torches
ELECTRICAL & ELECTRONIC EQUIPMENT
ATE Welding Engineering Robotics & Automation offers MIG welding torches. Read more
Puma Lift Electric Stacker
ELECTRICAL & ELECTRONIC EQUIPMENT
Puma Lift Trucks Pvt Ltd offers a wide range of puma lift
electric stacker.
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
