India Electronics Manufacturing Services Market Size & Share Analysis - Growth Trends and Forecast (2027 - 2032)

Market Trends and Insights

Government Incentives Under PLI 2.0 and Component Schemes

Component incentives can make assembly expansion more practical by supporting the suppliers needed around a finished-device factory. As of August 2026, the Electronics Component Manufacturing Scheme had approved 106 projects across 15 Indian states, with production underway at 38 approved plants.^[1] That operating subset gives electronics manufacturers a production base to consider when developing domestic sourcing arrangements. Under the Large Scale Electronics Manufacturing and IT Hardware 2.0 PLI schemes, 59 companies reported incremental production in fiscal 2025-26 through December 2025. Together, these programs address component supply and finished-product manufacturing. Further starts among approved component projects could widen an assembler's local sourcing choices, making plant commissioning the step that adds potential suppliers beyond the operating base.

China-Plus-One Outsourcing Shift to India

In March 2025, Apple shipped a record of about 600 tons of iPhones from India to the United States after stepping up production ahead of US tariffs. In September 2026, Foxconn and Tata Electronics factories in India were making iPhone 18 Pro and Pro Max models for export ahead of their global sales launch. This example connects an Indian production location with the timing requirements of an international device program, widening the practical case for geographic diversification. India's broader electronics production value rose 15.8% in fiscal 2025-26 compared with fiscal 2024-25. For manufacturers seeking additional outsourcing business, the strategic value lies in demonstrating readiness for a customer's launch schedule, alongside the ability to supply substantial production volumes.

Vertical Integration Into Component Manufacturing Boosting Value-Add

Owning a component manufacturer gives an EMS group a route to earnings from module production alongside device assembly. Dixon Technologies (India) Limited acquired 51% of Kunshan Q Tech Microelectronics (India) Private Limited on September 26, 2025. In September 2026, Q Tech India, the Dixon majority-owned joint venture of Q Technology (Group) Company Limited, sold 6.98 million finished camera modules, up 5.6% year over year but down 32.3% month over month. These reported sales figures were unaudited and subject to possible adjustment. Because Dixon completed its 51% purchase on September 26, 2025, the 5.6% year-over-year reading compares September 2026 sales with a month that fell almost entirely before Dixon's ownership.

Rising Domestic Demand for Smart Devices and EV Electronics

Domestic electric-vehicle demand creates an opportunity for EMS providers to seek manufacturing programs serving several vehicle formats. India registered 2.3 million electric vehicles in 2025, equal to 8% of new vehicle registrations. Electric two-wheeler sales totaled 1.28 million units and electric three-wheeler sales totaled 800,000 units in 2025. These categories accounted for 57% and 35% of 2025 EV sales, respectively. This concentration makes light-vehicle producers the first prospective customers for an EMS supplier seeking domestic automotive volume, rather than treating all vehicle programs as equally large opportunities.

Dependence on Imported Semiconductors and Components

Assembly expansion cannot remove the exposure created by dependence on overseas chip production. In its May 2026 report, NITI Aayog estimated that imports met 90-95% of India's semiconductor consumption.^[2] It warned that disruptions among concentrated global suppliers could trigger shortages affecting industries including consumer electronics. For consumer-electronics assemblers, this potential interruption makes dependable chip availability as consequential as adding finished-product capacity. By September 18, 2026, 5 Indian semiconductor plants had commenced commercial production, supplying domestic needs and exports, according to the Ministry of Electronics and Information Technology. Even with those domestic plants producing, overseas chip availability can limit the delivery commitments an EMS provider makes, regardless of assembly space.

Skill Shortages in High-Precision Electronics Assembly

Automated assembly can make engineering skills a constraint on usable production capacity. KPMG's 2026 assessment rated Indian EMS technician maturity as low to moderate and identified a gap in hands-on EMS and automation skills. In August 2025, ETManufacturing reported that EMS engineers might need to troubleshoot robotic arms and interpret sensor data, tasks that could become bottlenecks without targeted upskilling. For an EMS provider, this can make expansion depend on the availability of engineers capable of resolving production problems, alongside the number of assembly workers. Even with equipment in place, gaps in these capabilities can leave an automated production program dependent on scarce technical staff, increasing the time and cost required to expand it.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

India Electronics Manufacturing Services Market Segment Analysis

The electronics manufacturing services segment accounted for a 72.3% share of the India electronics manufacturing services market size in 2026 and is the fastest-growing segment, with a 10.3% CAGR over 2027-2032. This largest segment's scale is illustrated by Dixon Technologies' reported annual smartphone production capacity of 65 million units in India for fiscal 2025-26. Such capacity can allow brand customers to contract for production without creating a comparable manufacturing operation themselves. Dixon reports that capacity as serving both domestic and global brands, so its use depends on orders from several brand customers.

At the customer-program level, manufacturing services can extend into semiconductor assembly and test alongside finished-device production. Tata Electronics announced in February 2026 that it would manufacture Qualcomm Automotive Modules at its Jagiroad, Assam facility for Indian and global automakers. The planned applications included digital cockpits, infotainment, connectivity and intelligent vehicle systems. Qualcomm is the module provider and Tata Electronics is the announced manufacturing partner, placing an Indian EMS provider inside a global automotive platform's network of module manufacturers.

Contract manufacturing represented a 61.59% India electronics manufacturing services market share in 2026, making it the largest segment. By May 20, 2025, Dixon's wholly owned subsidiary Padget Electronics Private Limited had started manufacturing Alcatel smartphones under a contract with NxtCell India Private Limited. The arrangement separates the contracting counterparty from the manufacturing entity and the consumer-facing brand, illustrating how a single production program can involve distinct commercial roles. For a brand-linked program, this structure creates a position for an EMS specialist through manufacturing execution, without requiring the supplier to own the device brand.

Hybrid, turnkey and other business models form the fastest-growing segment, with a 10.45% CAGR forecast over 2027-2032. Kaynes Technology India Limited attributed 51% of consolidated revenue in the first quarter of fiscal 2026-27 to OEM-turnkey printed circuit board assembly, under a business classification subject to change. Original design manufacturing involves a different development role, illustrated by Aimtron Electronics Limited's June 2025 agreement for a US digital-infrastructure buyer's transformer-free uninterruptible power supply system. Aimtron was to lead end-to-end development, with engineering and manufacturing planned in India. Choosing between these models can hinge on how much product-development responsibility a buyer transfers with the manufacturing assignment.

Surface mount technology was the largest segment, accounting for 52.54% of market revenue in 2026. In September 2026, Syrma SGS Elemaster Private Limited, the joint venture of Syrma SGS Technology Limited and Elemaster Group, inaugurated a 20,000-square-foot Bengaluru facility including SMT and other assembly lines.^[3] Because the same Bengaluru facility also carries through-hole technology (THT) and box-build lines, a customer can place board assembly and final build in a single location.

Advanced packaging and hybrid processes form the fastest-growing segment, with a 10.5% CAGR forecast over 2027-2032. In September 2026, Kaynes Semicon's Sanand Unit 1 was running at a low-volume rate of about 3.6 million units annually, serving Alpha & Omega Semiconductor. Kaynes was packaging IPM5, the newer IPM7 and additional packages for this anchor customer. At roughly 300,000 units a month, adding packages for the anchor customer could expand Sanand Unit 1's workload without first requiring a new customer relationship.

Consumer electronics was the largest segment, accounting for 38.67% of market revenue in 2026. Dixon Technologies (India) Limited reported annual LED TV capacity of 5 million units in its fiscal 2025-26 report, which also described design and manufacturing in its consumer-electronics business. Dixon's design role lets a TV brand place product development and assembly with the same EMS provider. For that supplier, a larger assignment can come from design responsibility even without higher unit volume.

Automotive is the fastest-growing segment, with an 11.7% CAGR forecast over 2027-2032. Kaynes Technology India Limited reported that automotive contributed approximately 25% of its consolidated revenue in fiscal 2025-26, spanning EV components, battery management systems and advanced driver assistance systems. Because Kaynes's automotive work spans vehicle electrification and driver assistance, an EMS supplier can extend its manufacturing role as a vehicle customer places more electronic functions with production partners.

Geography Analysis

Tamil Nadu Electronics Manufacturing Services Market

Tamil Nadu is the leading state for EMS output, with a scheme-supported electronics manufacturing base and a large electronic-goods export business. In August 2026, the Ministry of Electronics and Information Technology reported government support for establishing 58 electronics manufacturing units in the state. Tamil Nadu's electronic-goods exports totaled USD 19.97 billion in fiscal 2025-26. Together, the manufacturing support and export activity connect a broader electronics program base with international demand, making the state relevant to suppliers seeking production relationships tied to overseas markets.

Karnataka hosts Syrma SGS Technology Limited's consolidated Bengaluru operations, which manufactured PCB assemblies and box builds during fiscal 2025-26. Because those operations pair board assembly with box build, a buyer can place connected board and final-build tasks with one manufacturer. Separately, Karnataka Industrial Areas Development Board is the implementing agency for the approved 224.5-acre electronics manufacturing cluster at Kotur and Belur in Dharwad taluk.

Haryana accommodates several manufacturing tasks within Syrma SGS Technology Limited's consolidated plant network. At Bawal Units 1 and 2 in Haryana, Syrma SGS's consolidated operations covered memory-module work and printed circuit board assembly in fiscal 2025-26. Its Manesar Units 1 and 2 also manufactured PCB assemblies and box builds during fiscal 2025-26. MeitY's February 2026 project-status report identified the approved 500-acre electronics manufacturing cluster at IMT Sohna in Nuh district. A buyer seeking memory-module and board assembly would therefore look to the Bawal units, and one seeking box builds to Manesar.

Regulatory Framework and Outlook

The comparison covers selected jurisdictions, India and Tamil Nadu, from the perspective of a non-micro EMS contractor manufacturing Schedule I equipment. National e-waste coverage excludes microenterprises, battery waste, packaging plastics and radioactive waste. Manufacturers and producers have distinct roles, with extended producer responsibility assigned to defined producers, including entities offering Schedule I equipment under their own brand. Facility approvals add a separate state process, including a specific classification for completely dry electrical and electronic item assembly in Tamil Nadu.

India's Medium rating reflects an operative e-waste framework with distinct obligations for manufacturers and defined producers. Tamil Nadu's Medium rating reflects site and commissioning conditions for covered industries, with completely dry electronic item assembly classified separately in the White Category. On January 27, 2026, national Air and Water Act guidelines were amended so that granted operating consents continue until canceled, subject to ongoing compliance and cancellation safeguards. This enacted validity provision supports the Easing direction for both jurisdictions by providing continuity after consent is granted while preserving state-level enforcement.

Value Chain Stages

The value chain comparison follows design, board assembly, and complete-system manufacture with verification, identifying where suppliers earn service revenue. In September 2026, the Government of India identified printed circuit boards, camera modules and display modules among import-dependent electronics inputs. This exposure connects upstream sourcing decisions with the ability of downstream manufacturers to complete a customer's product, making responsibility for parts and testing central to how much work a supplier can undertake.

Because boards and modules arrive from abroad, parts availability is tested first at board assembly and then carries into system integration. A supplier that assembles boards and also integrates and tests the complete system carries both parts availability and product acceptance for the customer. For a buyer outsourcing a complete system, assembly throughput alone is consequently an incomplete measure of supplier readiness, because an available board still has to clear the agreed product tests.

Key Opportunities for Market Participants

The opportunities comparison follows board assembly, converter integration and firmware programming for N2 and N3 e-truck programs seeking PM E-DRIVE demand incentives. From September 1, 2026, the phased manufacturing program added domestic PCB assembly of electronic components, semiconductors and connectors to integration steps required domestically from September 1, 2025. For articulated N3 vehicles, incentive eligibility covers only the puller tractor.

The central opening is a domestic converter-manufacturing offer that connects component assembly with integration and programming of the finished unit. A supplier can begin with selected tasks that match its capabilities and extend the assignment when a buyer also places adjacent converter work with it. Supplier participation depends on whether a qualifying vehicle maker uses an independent supplier for board assembly, wiring and firmware flashing or performs them in-house, since the rule requires domestic execution without prescribing outsourcing.