NEW DELHI: India’s electronics manufacturing services (EMS) industry is entering a decisive growth phase and could expand beyond $150 billion by FY30, according to a new report by KPMG in India. The assessment comes at a time when global electronics supply chains are undergoing major realignments, creating fresh opportunities for countries seeking a larger role in manufacturing and exports.
The report suggests that India has emerged as one of the fastest-growing electronics manufacturing destinations over the past five years, supported by rising domestic consumption, government incentives, and global companies looking to diversify production beyond traditional manufacturing hubs.
According to the report, the country’s EMS market has expanded from nearly $10-12 billion in FY20 to around $40-45 billion in FY25, reflecting a sharp increase in manufacturing activity across consumer electronics and mobile devices.
KPMG noted that India has successfully built scale in electronics assembly, particularly in high-volume manufacturing segments. However, the sector now faces the challenge of moving beyond assembly-led growth and capturing a greater share of value across the supply chain.
The report described the current phase as a crucial turning point, stating that while manufacturing volumes have grown substantially, deeper participation in design, components, engineering, and intellectual property ownership remains limited.
Key findings of the report:
EMS market size surge: India’s EMS sector has grown from approximately $10-12 billion in FY20 to nearly $40-45 billion in FY25.
FY30 projection: The market could exceed $150 billion by FY30 if current momentum continues.
Global opportunity: The worldwide EMS industry is valued at around $640-650 billion in 2025 and is projected to surpass $1 trillion in the next decade.
Limited global share: India currently contributes only around 5-6 per cent of global EMS manufacturing.
Assembly dominance: Growth has been strongest in mobile phones and consumer electronics manufacturing.
Value-chain gap: Participation in product design, advanced engineering, component manufacturing and intellectual property remains relatively low.
Import dependence challenge: Around 80-95 per cent of critical electronic components continue to be imported, limiting domestic value addition and profitability.
Policy support impact: Government incentives worth nearly $19.5 billion have played a significant role in accelerating industry growth.
Future priorities: Building component ecosystems, strengthening engineering capabilities, investing in design-led manufacturing and improving supply-chain integration will be critical for the next phase of expansion.
The study highlighted that global electronics manufacturing is being reshaped by geopolitical developments, supply-chain resilience strategies, and increasing technological complexity.
With multinational companies diversifying production networks and reducing concentration risks, India is positioned to benefit from the ongoing restructuring of global manufacturing ecosystems.
The report estimates that the worldwide EMS market, currently valued at around $640-650 billion in 2025, could cross the $1 trillion mark in the early 2030s, driven by expanding demand for connectivity solutions, electrification technologies, and outsourced manufacturing.
Despite this opportunity, India currently accounts for only about 5-6 per cent of global EMS manufacturing, indicating significant headroom for expansion.
“India’s EMS sector has reached a pivotal moment with firm foundations of scale, but the next phase of growth will be defined by depth. Realising India’s potential will require sustained investment in component ecosystems, engineering depth, and supply chain sophistication to unlock higher value participation in global electronics manufacturing,” said Rohan Rao, Partner, Automotive & Lead, Electric Mobility, KPMG in India.
The report concluded that the coming five to ten years will be crucial for determining whether India can evolve from a large-scale assembly destination into a comprehensive electronics manufacturing powerhouse with deeper value-chain participation.
Agencies