Electronics Manufacturing: India's PLI-Powered Assembly Boom
PLI schemes and China+1 are turning India into a major electronics and mobile-manufacturing hub, now moving toward components.
Market Size
~$130 Bn+ (India electronics production, FY26E)
Growth
~20% CAGR (FY26–30E)
Read
8 min
Published
Jul 2026
Overview
Electronics manufacturing services (EMS) - contract assembly of mobiles, consumer electronics, industrial and auto electronics - has scaled rapidly in India on the back of PLI schemes and global China+1 diversification. Mobile-phone assembly led the first wave, making India a large exporter; the strategic next phase is deepening value addition through components, PCBs, displays and semiconductors.
The core challenge and opportunity is localisation: assembly today imports most components, so value capture is thin. Component-PLI schemes aim to build the sub-assembly and parts ecosystem, raising domestic value addition over time. Global brands anchoring capacity in India (for both domestic and export markets) provide scale and demand visibility.
EMS is a volume-and-scale business with thin margins, sensitive to global demand, component availability and PLI continuity. Players moving up into higher-value components and design capture better economics than pure assemblers.
Illustrative projection from the report's stated market size (~$130 Bn+ (India electronics production, FY26E)) and growth (~20% CAGR (FY26–30E)).
Key Highlights
- Mobile assembly led the first PLI wave
- Strategic shift toward components and value addition
- China+1 diversification anchoring global brands
- Thin assembly margins; components improve economics
Growth Drivers
- PLI schemes for electronics and components
- China+1 supply-chain diversification and exports
- Rising domestic electronics consumption
- Global-brand capacity anchoring in India
Key Players
Investment Outlook
EMS is a strong structural theme on PLI and China+1, but durable value hinges on moving from assembly toward components and design. We favour players climbing the value chain with diversified end-markets over single-product assemblers.
Key Risks
- Thin assembly margins and component-import reliance
- PLI-continuity and policy dependence
- Global electronics-demand cyclicality
The Neoma View
We favour EMS players deepening component and design value addition with diversified end-markets; assembly scale alone leaves margins fragile in our assessment.
Talk to an advisor →All figures are indicative and for information only - not investment advice or a recommendation. Market sizes, growth rates and financial metrics are hedged estimates that vary by source and period. Please consult your advisor before investing.
More in Industrials
Railways & Rolling Stock
Railways & Rolling Stock: Riding India's Infrastructure Supercycle to Value Creation
India's railway sector is undergoing a multi-decade transformation, driven by massive public capex and modernization, positioning rolling stock manufacturers and component suppliers for sustained growth.
Water & Wastewater Treatment
Water & Wastewater Treatment: Capital Discipline Meets Structural Scarcity
As industrial Zero Liquid Discharge (ZLD) mandates tighten and municipal Hybrid Annuity Models (HAM) de-risk execution cash flows, India's water treatment sector is shifting from low-margin civil contracting to high-margin O&M and proprietary membrane technology.
Construction Equipment & Machinery
Construction Equipment & Machinery: India's Infrastructure Backbone Shifts Gears
India's construction equipment sector is poised for robust growth, driven by an ambitious national infrastructure pipeline and increasing mechanisation, presenting a compelling long-term investment theme.