Introduction: India’s Rise as a Global Electronics Manufacturing Hub

India is rapidly emerging as one of the world’s most attractive destinations for Electronics Manufacturing Services (EMS). Driven by strong government support, expanding manufacturing infrastructure, and the global China+1 strategy, India is transforming from a low-cost assembly base into a strategic electronics manufacturing hub.

Global OEMs and EMS providers are increasingly looking to India for PCB assembly services, circuit board assembly, box build assembly, electronics components manufacturing, and semiconductor manufacturing. With rising exports and growing domestic demand, India offers both scale and sustainability for long-term manufacturing investments.

Electronics Manufacturing Services (EMS) in India: Market Overview

India’s EMS industry has witnessed exponential growth over the last decade. According to industry and government estimates:

• Electronics production increased from USD 48 billion in FY2017 to USD 101 billion in FY2023
• Upcoming Projection is to reach USD 280–300 billion by FY2026

📊 India Electronics Production Growth (USD Billion)
(FY2017 → FY2023 → FY2026 Projection)

China+1 Strategy: Why Global OEMs Are Shifting Manufacturing to India

Key PCB Assembly Capabilities

• High-speed SMT and THT lines
• Multilayer and HDI PCB assembly
• Automated Optical Inspection (AOI) and X-ray inspection
• In-circuit testing (ICT) and functional testing

High-Growth Application Areas

• Automotive electronics and EV systems
• Industrial automation and power electronics
• Telecom and networking equipment
• Consumer electronics and IoT devices

Indian EMS providers are now capable of handling high-mix, medium-to-high volume circuit board assembly services that meet global quality and reliability standards.

Box Build Assembly: Expanding Beyond PCB Manufacturing

India’s EMS ecosystem is rapidly moving up the value chain through box build assembly and system integration services.

Box Build Assembly Includes

• Mechanical and enclosure assembly
• Cable and wire harness integration
• Thermal management solutions
• Firmware loading and system configuration
• Final testing, labeling, and packaging

For global OEMs, box build assembly in India enables end-to-end manufacturing, reducing logistics complexity and improving time-to-market.

Industries benefiting most include:

• Medical electronics
• Industrial equipment
• Energy and power systems
• Telecom infrastructure
  
  

Electronics Components Manufacturing: Strengthening Supply Chain Localization

While final assembly has scaled quickly, electronics components manufacturing is the next critical growth phase for India.

Focus Component Segments

• Passive components and magnetics
• Connectors and cables
• Mechanical enclosures
• Power electronics components
• Camera modules and sub-assemblies

Localization of components helps EMS providers and OEMs:

• Reduce import dependency
• Improve cost competitiveness
• Shorten lead times
• Strengthen export readiness

Government policies are now explicitly focused on developing a robust electronics components ecosystem in India.

Check Article –> Electronic Manufacturing Services: Streamlining OEMs Workflows

Electronics Manufacturing Exports: Strong Proof of Global Competitiveness

India’s electronics export growth clearly demonstrates its global manufacturing capability.

Mobile Phone Export Growth

• FY2014–15: ₹1,566 crore
• FY2023–24: ₹1.2 lakh crore

📊 India Mobile Phone Exports Growth (₹ crore)

In USD terms:

• USD 15.6 billion smartphone exports in FY2023–24
• USD 13.5 billion exported in H1 FY2024–25 alone

📊 India Smartphone Exports (USD Billion)

This export surge is driven by global brands manufacturing in India for international markets, validating India’s EMS and supply chain maturity.

Semiconductor Manufacturing in India: Building the Future Electronics Ecosystem

India is also investing heavily in semiconductor manufacturing, including:

• Semiconductor fabrication units
• OSAT (Outsourced Semiconductor Assembly and Testing)
• Advanced packaging facilities

Approved investments exceeding ₹1.5 lakh crore signal India’s intent to become part of the global semiconductor value chain. While full-scale fabs will take time, semiconductor packaging and testing offer near-term opportunities aligned with EMS capabilities.

Electronics Manufacturing Company Stocks: Investor Perspective

With rapid sector growth, electronics manufacturing company stocks in India have attracted strong investor interest.

Key metrics investors track include:

• Export revenue contribution
• Global OEM customer base
• EBITDA margin improvement
• Capacity utilization and ROCE
• Working capital efficiency

Companies offering PCB assembly services, box build assembly, and system integration are particularly well positioned for long-term growth.

Strategic Advantages for Global OEMs and EMS Providers

For Global OEMs

• India offers scalable, export-ready manufacturing
• Reduced geopolitical and supply chain risks
• Strong EMS partner ecosystem

For EMS Providers

• Opportunity to move up the value chain
• Component localization and design-led manufacturing
• Long-term global customer programs

What is India’s Role in the Global Electronics Manufacturing Future

India is no longer an alternative manufacturing destination; it is becoming a core pillar of global electronics manufacturing strategies. Supported by strong government incentives, expanding EMS capabilities, growing exports, and semiconductor investments, India presents a compelling opportunity for global OEMs and EMS providers.

As the China+1 strategy accelerates, companies that align early with India’s electronics manufacturing ecosystem will gain a decisive competitive advantage in the global market.