Electronics Manufacturing: India's PLI-Powered Assembly Boom

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.

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.

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.