India Electronics Manufacturing Services Market Size & Opportunities Analysis - Growth Strategies, Competitiveness, and Forecasts (2026 - 2032)

India Electronics Manufacturing Services Market Growth Factors

Emergence of ATMP Facilities and Focus on Mature Nodes Are Key Trends

• India’s assembly, testing, marking, and packaging (ATMP) capacity is ramping up aggressively under the Semiconductor Mission.
• A flagship example is Tata’s TSAT facility in Morigaon, Assam, backed by USD 3.2-billion (INR 27,000 crore). It will use advanced packaging technologies, such as flip‑chip and integrated system-in-package (ISIP), to test and package more than 48 million chips daily.
• Micron Technology is building a large-scale ATMP plant in Sanand, Gujarat, with an investment of USD 2.75 billion (INR 22,500 crore).
• Also, CG Power, along with Renesas Electronics and Stars Micro, has launched an OSAT pilot line in Sanand, slated to expand into a high-volume packaging/testing facility.
• These moves reflect a deliberate policy strategy: ATMP facilities are less cap‑intensive than full fabs but are critical for building a resilient ecosystem.
• At the same time, India is deliberately targeting mature-node technologies, especially in the 28–65-nm range, rather than chasing the bleeding‑edge (e.g., 3 nm).
• For instance, the Tata‑PSMC fab in Dholera, Gujarat, being built for USD 11 billion (INR 91,000 crore) is designed to produce 28 nm and larger‑node chips for power-management, automotive, telecom, and logic applications.
• This strategy fills a global gap; mature-node chips remain highly in demand for cost-sensitive, high-volume applications, and India is positioning itself as a reliable supply‑chain partner.

Rising Domestic Demand for Consumer Electronics Is Fueling Market Growth

• India's burgeoning middle class and rising disposable incomes are driving substantial growth in consumer electronics demand.
• With a population exceeding 1.4 billion and nearly one-fourth aged between 15 and 29 years, India represents a massive and young consumer base increasingly prioritizing technology products.
• Rapid urbanization and evolving lifestyle preferences are expanding the addressable market for sophisticated electronics.
• The proliferation of affordable financing options, including EMI schemes, has made premium electronics accessible to broader demographics.
• The work-from-home culture emerging from the pandemic has sustained demand for laptops, tablets, peripherals, and connectivity devices.
• Additionally, the expansion of organized retail and improved logistics infrastructure has enhanced product accessibility across tier-2 and tier-3 cities.
• According to industry projections, this domestic consumption growth complements export ambitions, providing EMS companies with dual revenue streams and reducing dependence on international markets.
• The PLI scheme offers financial incentives ranging from 4% to 6% on incremental sales of goods manufactured in India over a five-year period.
• The government approved a PLI scheme worth INR 22,919 crore for electronic components in March 2025, targeting critical components, such as PCBs, SMD passives, and lithium-ion cells.
• According to the Ministry of Electronics and IT, this initiative is expected to attract investments exceeding INR 59,000 crore and generate production potential of INR 4.56 lakh crore over six years, while creating approximately 91,600 direct jobs.
• The scheme's impact on mobile phone manufacturing has been transformative. As per the IBEF, mobile phone exports grew from INR 1,556 crore in FY15 to INR 1.2 lakh crore in FY24, representing a CAGR of 62%.
• Apple, Samsung, Foxconn, and Dixon Technologies have committed significant investments under the scheme. Apple alone accounted for approximately INR 1.5 lakh crore in iPhone exports from India in FY25, with the company now manufacturing 17% of its global iPhone output domestically.
• The scheme's employment-linked incentives have further accelerated job creation, particularly for women, with approximately 500,000 jobs created in the sector, with projections for an additional 150,000 to 200,000 jobs by the end of FY25.

India Electronics Manufacturing Services Market Segmentation Analysis

Service Type Insights

The manufacturing category holds the largest share in the Indian EMS market in 2025, of approximately 35%, and it is expected to maintain its dominant position throughout the forecast period. This dominance stems from the massive scale of box-build assembly operations, particularly for smartphones and consumer electronics, which require comprehensive manufacturing infrastructure. The category encompasses full-scale manufacturing operations, including printed circuit board assembly, component sourcing, system integration, and final product packaging.

Design & engineering services will witness the highest CAGR during the forecast period, driven by increasing emphasis on product innovation and local R&D capabilities. Indian EMS players are progressively moving beyond contract manufacturing to offer ODM services, where they handle complete product conceptualization, prototyping, and design iterations. Dixon Technologies and Kaynes Technologies are investing substantially in R&D centers to provide design support for critical integrated assemblies. This transition from box-build to design-led manufacturing enables higher value addition and stronger differentiation in the competitive landscape.

These service types are covered:

• Design & Engineering (Fastest-Growing Category)
• Assembly
• Full-Scale Manufacturing (Largest Category)
• Test & Development Implementation
• Logistics
• Others

Application Analysis

Consumer electronics dominate the Indian EMS market with approximately 30% share. This is due to the country's position as the world's second-largest smartphone manufacturer and a major producer of televisions, wearables, and smart home devices. Over 325 million mobile phones are manufactured annually in India, with production facilities operated by Samsung, Xiaomi, Oppo, Vivo, and Apple's contract manufacturers, including Foxconn, Pegatron, and Tata Electronics.

The automotive category is projected to register the fastest growth during the forecast period, driven by India's expanding electric vehicle ecosystem and increasing electronics content per vehicle. The Indian electric car market recorded a sale of 19,778 units in 2023, and it is projected to reach 430,603 units by the year 2030. This will create a substantial demand for battery management systems, power electronics, and electric drivetrains. EMS providers are capitalizing on this opportunity by establishing specialized capabilities for automotive-grade electronics manufacturing. Companies like Sona BLW, Minda Industries, and Varroc Engineering are expanding automotive electronics production, while traditional EMS players are entering this high-margin category through strategic partnerships with automotive OEMs.

These applications are covered:

• Consumer Electronics (Largest Category)
• Automotive (Fastest-Growing Category)
• Industrial
• IT & Telecommunications
• Healthcare & Medical Devices
• Aerospace & Defense
• Others

India Electronics Manufacturing Services Market Geographical Analysis

Tamil Nadu Electronics Manufacturing Services Market Size

Tamil Nadu holds the largest share in the Indian EMS market in 2025, of approximately 40%. This dominance is primarily attributable to the state's well-established electronics manufacturing ecosystem, concentrated in the Sriperumbudur Special Economic Zone near Chennai. The region has emerged as India's smartphone manufacturing capital, with major facilities operated by Foxconn, Pegatron, Samsung, and Flextronics.

Foxconn's presence in Tamil Nadu is particularly significant, with the company operating facilities covering approximately 150 acres in Sriperumbudur and employing around 30,000 workers primarily for iPhone assembly. The company announced a USD 1.5 billion investment in 2025 to establish a display module assembly facility at the ESR Oragadam Industrial and Logistics Park, which is expected to create approximately 14,000 additional jobs. Tamil Nadu's advantages include a highly skilled workforce and the state government's proactive industrial policies, including fast-tracked land acquisition, tax incentives, and excellent port connectivity through Chennai Port. All these factors continue to attract continuous investment from global electronics manufacturers.

Karnataka EMS Market Forecast

Karnataka is set to witness the highest CAGR, of approx. 18.0%, during the forecast period, driven by Bengaluru's status as India's technology capital and the state's rapidly expanding electronics manufacturing infrastructure. The state has attracted substantial investments from both global giants and domestic players, with Tata Electronics establishing a major presence through its acquisition of Wistron's facility in Narasapura and the establishment of a greenfield FATP facility near Hosur.

Bengaluru's thriving ecosystem of R&D centers, component suppliers, and design houses creates unique advantages for EMS companies. The presence of leading technology companies and startup clusters facilitates collaboration and innovation in product development. Companies like Kaynes Technologies, Centum Electronics, Avalon Technologies, and Smile Electronics have established sophisticated manufacturing capabilities in the state, focusing on high-value industries, including aerospace, defense, industrial automation, and medical devices.

The Karnataka government's electronics policy, emphasizing skill development and infrastructure support, has attracted investments in semiconductor packaging, PCB manufacturing, and advanced electronics assembly. Foxconn and Samsung have announced plans to expand operations in the state, with new facilities expected in Karnataka and Telangana to diversify their manufacturing footprint beyond Tamil Nadu.

These states are covered:

• Tamil Nadu (Largest State Market)
• Karnataka (Fastest-Growing State Market)
• Uttar Pradesh (Larger Market)
• Maharashtra
• Telangana
• Haryana
• Gujarat
• Rest of India

India Electronics Manufacturing Services Market Share

The Indian electronics manufacturing services market is consolidated. The market is characterized by the presence of both global giants and rapidly growing domestic players, each competing on scale, technological expertise, vertical integration, and customer relationships. Global players, such as Foxconn, Flex, Jabil, and Wistron, dominate IT hardware and telecommunications equipment manufacturing, leveraging their established relationships with international OEMs and advanced manufacturing technologies.

Indian companies, including Dixon Technologies, Tata Electronics, Amber Enterprises, and Kaynes Technologies, have established strong positions in consumer electronics, appliances, industrial, automotive, and medical devices manufacturing. These domestic players benefit from a deep understanding of local market dynamics, government support under Make in India initiatives, and increasing emphasis on indigenization by Indian OEMs. The competitive landscape is witnessing a strategic shift as EMS providers transition from pure-play contract manufacturing to offering comprehensive ODM services encompassing design, engineering, prototyping, and after-sales support.

The market is also seeing vertical integration initiatives, with companies investing in PCB manufacturing, component production, and testing capabilities to enhance value addition and reduce import dependencies. Companies that successfully develop end-to-end capabilities from design to delivery while maintaining cost competitiveness and quality standards are expected to gain significant market share in the rapidly growing Indian EMS ecosystem.

India Electronics Manufacturing Services Market News

• In May 2025, the Union Cabinet approved the Electronics Component Manufacturing Scheme with a fiscal outlay of INR 22,919 crore to enhance domestic manufacturing of passive electronic components, PCBs, and battery cells, expecting to attract investments exceeding INR 59,000 crore over six years.
• In May 2025, Foxconn announced a USD-1.5 billion investment in a new display module assembly facility at ESR Oragadam Industrial Park near Chennai, for iPhone production.
• In April 2025, Dixon Technologies announced strategic partnerships with HKC Overseas for display module sub-assembly and Chongqing Yuhai for mechanical enclosures, with combined investment commitments of INR 2,500 crore under the PLI scheme.
• In March 2025, Tata Electronics completed the acquisition of a majority stake in Pegatron Technology India Private Limited in Chennai, to strengthen its presence as a domestic manufacturer of premium smartphones with an integrated FATP capability.
• In February 2025, Amber Enterprises announced a partnership with Korea Circuit to establish a high-density interconnect semiconductor substrate manufacturing unit at Jewar, Uttar Pradesh, with a proposed investment of INR 4,200 crore under the electronics component PLI scheme.
• In January 2025, Kaynes Technologies expanded its ODM capabilities with the launch of smart metering and IoT solutions for consumer appliances, targeting the growing demand for connected devices in India's smart city initiatives.