India is fast emerging as a global electronics manufacturing hub. Once known primarily for its IT services and software exports, the country is now producing and exporting high-value hardware, particularly smartphones, wearables, and IT components. With electronics becoming India’s third-largest export segment after petroleum and gems & jewellery, the nation stands at the forefront of a manufacturing transformation.
As per the India Brand Equity Foundation (IBEF) report of August 2025, electronics exports touched ₹3.27 lakh crore (US$38 billion) in FY25, marking a 36% year-on-year surge. This remarkable rise has been fuelled by the Electronics System Design & Manufacturing (ESDM) and Electronic Manufacturing Services (EMS) sectors, with Apple’s iPhone production leading the charge.
This analysis serves investors, policymakers, and industry professionals looking to understand India’s ascent in global electronics and the investment opportunities emerging in its EMS ecosystem.
Table of Contents
- India’s Electronics Manufacturing Story
- Apple’s iPhone Exports: A “Make in India” Milestone
- Understanding the EMS Industry
- Why Global Giants Are Flocking to India
- Government Push & PLI Schemes
- Indian EMS Stocks to Watch
- Key Challenges to Sustain Growth
- FAQs
India’s ESDM industry, spanning semiconductors to consumer electronics, has become one of the fastest-growing globally.
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Target: US$500 billion worth of manufacturing output by FY30.
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Job creation: 12 million new roles expected by FY27.
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Major segments: Mobile phones, LED lighting, medical devices, automotive electronics, and flat-panel displays.
These milestones reflect India’s focus on developing an integrated hardware ecosystem capable of meeting both domestic and export demand.
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Apple’s growing investment in India epitomises the country’s manufacturing momentum. India is the second-largest mobile phone producer globally with over 300 factories.
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Mobile phone exports surged 11,950% between 2018 and 2024, reaching ₹1.77 lakh crore (US$20.5 billion).
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Global contract manufacturers Foxconn, Pegatron, and Wistron (now Tata Electronics) lead iPhone assembly and exports from India.
Key Developments:
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Foxconn: ₹13,000 crore investment in Tamil Nadu to expand output, creating 14,000 jobs.
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Pegatron: Operating two facilities in Tamil Nadu to boost Apple’s production pipeline.
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Tata Electronics (formerly Wistron): Exporting billions worth of iPhones yearly from Karnataka.
Apple plans to have India produce 255 of the total iPhone units by 2026 as part of its China+1 diversification strategy, underscoring India’s growing influence in the global value chain.
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There’s an insightful video by Mint explaining how Apple’s Made-in-India iPhone exports crossed ₹1 lakh crore — worth watching for context on India’s electronics boom.
Electronic Manufacturing Services (EMS) firms handle product design, printed circuit board assembly, testing, logistics, and after-sales support for global OEMs.
According to EY, India’s EMS market is projected to grow from US$24 billion in FY22 to US$80 billion by FY27, more than tripling in five years.
| EMS Stage |
Description |
| Design & PCB Assembly |
Construction and design of printed circuit boards for various electronics |
| Box Build & Testing |
Full product assembly and quality testing (phones, routers, appliances) |
| After-Sales & Logistics |
Global shipping, packaging, and repairs for OEMs |
This evolution from low-margin assembly to design-led production places Indian EMS firms in a high-value strategic position.
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Multinational OEMs are expanding manufacturing bases in India for four major reasons:
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China + 1 Diversification: India offers labour costs up to four times lower than China or Vietnam.
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Government Incentives: Policies such as PLI, SPECS, and EMC 2.0 reduce operational costs and offer 4–6% incentives on incremental sales.
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Domestic Demand: A trillion-dollar digital economy drives local need for IT hardware, 5G devices, and automotive electronics.
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Export Competitiveness: In Q1 FY26 alone, India’s electronics exports surged 47% year-on-year, led by smartphones and IT hardware.
New policy initiatives have made electronics manufacturing one of India’s most incentivised industrial sectors:
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PLI for Large-Scale Electronics (2020): Targets mobile and component manufacturing.
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PLI 2.0 for IT Hardware (2023): Encourages laptops, tablets, and server production.
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Semiconductor Mission: ₹1.25 lakh crore investment in three fabrication units.
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Electronics Components Scheme (2025): ₹59,350 crore outlay expected to create 91,000 jobs.
These programmes aim to establish a self-reliant supply chain and reduce India’s 60% dependence on imported components—mainly from China.
The EMS boom has given rise to several promising listed players on the Indian bourses.
| Company |
Highlights |
| Kaynes Technology |
Expanding into chip testing and high-margin box-builds; FY23–26E revenue CAGR of 43.2%. |
| Syrma SGS Technology |
Focused on industrial and medical electronics; FY23–26E CAGR at 39.5%. |
| Avalon Technologies |
Complex product exports driving growth; FY23–26E CAGR of 20.6%. |
| Dixon Technologies |
India’s largest EMS firm, acquiring new customers and expanding into IT hardware; FY23-26E CAGR at 36.3%. |
To assess how India’s largest EMS player is valued amid the manufacturing boom, check the latest Dixon share price, updated charts, and valuation ratios on Finology Ticker.
Despite the strong momentum, India’s electronics sector faces three key challenges:
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Import Dependence: India still imports around 60% of its electronic components, primarily from China and Southeast Asia, posing a risk to supply chain stability.
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Value Addition Gap: Most Indian EMS firms specialise in assembly, while high-margin design and intellectual property ownership often remain with global OEMs.
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Regional Competition: Nations like Vietnam, Indonesia, and the Philippines are also offering competitive incentives to attract global manufacturers.
Addressing these challenges by fostering a local component ecosystem is crucial for India's transition from an assembler to a design-led manufacturing power.
Want to analyse how players like Kaynes, Syrma SGS, and Avalon are positioned within India’s manufacturing upcycle? Browse the Electronics Sector for comparative stock data and performance ratios.
1. What are Electronic Manufacturing Services (EMS)?
EMS firms are companies that design, manufacture, test, and ship electronic products for other companies (OEMs) like Apple, Dell, or Samsung. They act as outsourced manufacturing partners.
2. Why are Apple’s iPhone exports from India significant?
They are a major indicator of India's growing capability in high-value manufacturing and signal the trust global technology leaders have placed in the Indian ecosystem.
3. What is the China + 1 strategy, and how does it benefit India?
The China + 1 strategy is a business approach where companies diversify their supply chains by setting up manufacturing facilities in countries other than China. India is a key beneficiary due to its low costs, large workforce, and government incentives.
4. What are the best EMS stocks for investors to watch in India?
Key listed EMS companies that are central to this growth story include Kaynes Technology, Syrma SGS Technology, Avalon Technologies, and Dixon Technologies.
5. How big is the Indian EMS market expected to become?
Projections suggest India's EMS market will reach US$80 billion by FY27, with an annual growth rate exceeding 30%, making it one of the fastest-growing in the world.
6. Which new sectors are driving demand for EMS in India?
Emerging high-growth sectors include automotive electronics (especially for electric vehicles), medical devices, 5G telecom equipment, and industrial automation.