According to a report by Motilal Oswal Financial Services, India’s domestic electronic manufacturing services (EMS) market is projected to grow at 32 per cent compound annual growth rate (CAGR) from $17.5 billion in financial year 2021-22 (FY22) to $72.2 billion in FY27.
As per the report, this is because the market is backed by robust government measures such as the production- linked incentive (PLI) schemes and Semicon India programme, to promote electronic manufacturing in the country. The report mentioned that additional initiatives will be necessary to promote component manufacturing to further boost localisation and value addition in India, while the government is already working on various schemes.
The report highlighted that companies like Dixon Technologies and Amber Enterprises (BUY) have achieved market leadership in their key domains in the EMS market and are now concentrating on expanding their presence across different segments and backward integration.
It highlighted that electronics production moved up from $ 48 billion in FY17 to $ 101 billion in FY23 with several government measures. Further, it mentioned that India’s electronic manufacturing capacity is projected to reach $ 500 billion (finished goods $ 350 billion and components $ 150 billion) by FY30 which would imply significant investments in enhancing the component ecosystem.
Moreover, as per the report, India has significant presence and capabilities of assemblers and original equipment manufacturers (OEMs) in the electronics value chain such as Foxconn, Dixon, Amber, Pegatron, Apple, Samsung, BoAt and Atomberg.
