India’s electronic contract-manufacturing sector is expected to grow by over six-fold to USD 152 billion by 2025, stated the Electronic Industries Association Of India (Elcina).
Globally, the electronic manufacturing services (EMS) sector was valued at USD 832 billion in 2019 and is estimated to grow to USD 1,055 billion by 2025. This effectively means it can increase from less than 3% of the global industry to about 14% within five years.
Electronics and IT Secretary Ajay Prakash Sawhney, while releasing the ‘EMS Task Force Report’ by Elcina, emphasized the need to manufacture printed circuit board (PCB) assemblies and reduce import dependency.
Sawhney spoke about a massive opportunity in products such as servers, laptops, and tablets and encouraged the industry to take up these high-value and big volume products. China exports USD 685 billion of electronics to the world. India has set a target of USD 100 billion exports of mobiles alone by 2025, which is possible with the support of the production-linked incentive (PLI) scheme.
There are an estimated 700 EMS players in India, including 100 global companies and 600 domestic. “EMS is the key link between components and finished equipment. All major OEMs are keen to develop alternative sources to prevent uncertainty and supply chain disruptions. India is well-placed to service this market, which has grown exponentially with EMS’s enhanced electronics manufacturing role.