Introduction
The phrase Electronic Manufacturing Services (EMS) might once have sounded niche and obscure, but today it lies at the heart of a seismic shift in global manufacturing strategy. As supply chains reconfigure, technology demands accelerate, and nations vie for the status of preferred manufacturing destination, India is positioning itself as a dominant player.
By 2026, the country aims not merely to participate but to lead. This blog explores how India is set to emerge as a global EMS hub, underscoring compelling statistics, policy tailwinds and strategic positioning for companies like Evoflex to capitalise on the transition.
The Rise of Electronics Manufacturing Services in India
India’s EMS journey is no longer aspirational, it’s accelerating. According to the Institute for Manufacturing & Electronics Business (IBEF), India’s Electronics System Design & Manufacturing (ESDM) industry is expected to reach US$ 220 billion by 2025, growing at a CAGR of 16.1 % from 2019.
Adding weight: The report published by the Ministry of Electronics & IT (October 2025) states that electronics became India’s third-largest export category in FY 2024-25.
A market research piece estimates India’s EMS-ODM market to grow from USD 81 billion in 2024 to USD 186.5 billion by 2035.
What’s driving this growth? Domestically rising consumer electronics demand, global supply-chain diversification (away from China), and proactive government schemes (which we’ll cover next). The result: India is transitioning rapidly from assembly-work to higher value EMS roles including design, testing, PCB assembly, full-turnkey manufacturing.
Why India is the Choice for Global EMS Operations
Here’s a breakdown of key favourable factors that place India on the global EMS map:
Strategic Government Policy & Incentives
India’s push to become an EMS hub is backed by aggressive policy initiatives. For example:
On 28 March 2025, the Indian government introduced a USD 2.7 billion production-linked incentive (PLI) scheme focused specifically on electronic components.
Under the Electronics Component Manufacturing Scheme (ECMS), seven projects worth ₹ 5,532 crore were approved in Oct 2025; expected output was ₹ 44,406 crore and over 5,000 new jobs.
These policies reduce import dependence and bolster India’s manufacturing ecosystem key for EMS players who want overseas brands to localise operations.
Supply Chain Diversification & “China + 1” Imperative
Global firms are increasingly seeking diversification from China, thanks to geopolitical risk, rising labour costs and logistics challenges. The EMS industry research identifies regionalisation and supply-chain shifts as major drivers, with 30-40 % of China-based production migrating elsewhere.
India is a natural beneficiary: cost-competitive labour, improving infrastructure and favourable policy make it an attractive “+1” destination.
Domestic Demand Tailwinds & Scale
India’s electronics market is gaining scale fast. One report projects the domestic market to reach US$ 300 billion by 2025-26, with a requirement of US$ 120 billion in exports.
Another article estimates India’s electronics manufacturing market to grow at ~27 % CAGR from FY 2023 to FY 2028 and hit Rs 27.7 lakh crore by FY 28.
The combination of huge local demand plus export potential creates a strong value proposition for EMS providers.
Upgrading from Assembly to High-End Services
Earlier, India’s manufacturing strength was dominated by low-value assembly. But the era of “EMS 1.0” is evolving into “EMS 2.0”, where design, component manufacturing, and higher-margin services matter. A Jan 2025 report describes EMS 2.0 as focusing on component-manufacturing rather than just assembly.
This shift aligns with companies like Evoflex that provide sophisticated contract manufacturing, board-level assembly, testing, and end-to-end solutions.
How Evoflex Fits into India’s EMS Ecosystem
At Evoflex, we are uniquely positioned to plug into this surge:
- Our expertise in turnkey manufacturing, complex PCBs, SMT/THT assembly, validation & testing means we address the higher-value end of EMS, not just basic assembly.
- With India’s government incentivising localisation (components, sub-assemblies) and global OEMs relocating operations, Evoflex’s Indian footprint offers strategic advantage.
- We support clients in sectors such as consumer electronics, automotive electronics, medical devices and IoT; precisely the growth verticals driving India’s EMS expansion.
- Our commitment to industry 4.0, automation, skilled workforce and quality systems aligns with the evolution of India’s EMS market from low-cost labour to innovation-led manufacturing.
- In short, as India becomes the global hub for EMS, companies like Evoflex become the local anchor for international brands seeking high-quality, reliable manufacturing solutions from India.
Key Trends Shaping Indian EMS in 2026
What exactly will drive India’s EMS momentum in 2026? Here are five major trend vectors to watch:
Smart Manufacturing and Industry 4.0:
AI, IoT, robotics and digital-twins are reshaping manufacturing. The global EMS research notes that AI-driven predictive inventory management and smart factories are among top trends.
For India, this means EMS providers must invest in advanced manufacturing—increasing productivity and global competitiveness.
Vertical Diversification: Automotive, Medical & IoT:
While smartphones and consumer electronics have driven much growth, new segments are heating up. For example, PCB assembly and box-build is 62.4 % of global EMS revenue in 2024.
In India too, rising automotive electronics (EVs, battery management systems), medical device manufacturing and industrial IoT present higher-margin opportunities.
Localisation of Components & Sub-Assemblies:
India’s push to build a component ecosystem is real. Production of multi-layer PCBs, high-density modules, camera modules etc., is getting major investment. The FAQ estimates India’s EMS production could grow from USD 23.5 billion to USD 152 billion by 2025.
Component localisation reduces dependency and adds value—crucial for global EMS chains.
ESG and Green Manufacturing:
Global buyers increasingly demand sustainable manufacturing. Indian EMS providers are responding by integrating eco-friendly processes, renewable energy, waste reduction and compliance. This trend will define which Indian manufacturers win global contracts.
Workforce & Skill-Upgradation:
Projected job creation in India’s electronics manufacturing sector is around 6 million by 2025-26. The availability of skilled workforce and rapid up-skilling programs will be critical for EMS players operating high-complexity manufacturing lines.
Challenges and the Way Forward
Of course, growth is never without hurdles. Some of the challenges India needs to navigate include:
- Supply-chain gaps: Even as India scales, parts of the ecosystem (components, high-precision manufacturing) remain under-penetrated. Reports suggest supply-chain bottlenecks and component shortages hinder growth.
- Competition from regional alternatives: Countries like Vietnam, Mexico and Malaysia are also attracting EMS investment. India needs to maintain cost-competitiveness, infrastructure, logistics and ease-of-doing-business.
- Infrastructure & logistics: High-end EMS requires stable power, connectivity, skilled labour, regulatory predictability. Continuous investment is required.
- Technological readiness: Moving from assembly to design and high-precision manufacturing demands R&D, advanced equipment, certification capabilities and global quality systems.
- Nonetheless, the outlook remains overwhelmingly positive for those who invest wisely and build capability.
Conclusion:
India’s march toward becoming a global electronics manufacturing services hub is no accident; it is the result of policy alignment, market scale, global supply-chain shifts and the rising capabilities of Indian EMS providers. For companies like Evoflex, the alignment is perfect: we offer the capability to serve global OEMs, cutting-edge manufacturing, end-to-end support all from India.
Key take-aways:
- India’s EMS sector is projected to swell significantly with domestic electronics expected to reach US$ 220 billion by 2025.
- Government initiatives such as PLI, ECMS are catalysing component-manufacturing and exports.
- Global EMS trends such as “China + 1”, supply-chain realignment and Industry 4.0 favour India.
- Evoflex stands ready to leverage this wave with advanced manufacturing solutions from India.
- Challenges remain (component supply, infrastructure, global competition) but the momentum is strong.
- If your brand is seeking a reliable Indian manufacturing partner for EMS—from prototyping to full-scale production—Evoflex is ready to guide you into this new era.
