Highlights
- Electronics production is a ~US$115bn market growing rapidly (FY24-30E CAGR: ~25%) but historically import-reliant. India is poised to become a global hub, fueled by strong domestic demand, export competitiveness, and government-led import substitution. Rising consumption, miniaturization, and electrification across sectors, from automotive to industrial, create sustained pull, while incentives enhance cost competitiveness and project IRRs.
- Within components, Printed Circuit Boards (PCBs) stand out as one of the most attractive sub segments, forming the backbone of nearly all electronic devices by enabling connectivity and core functionality. The bare PCB market in India is ~US$5bn with ~88% import dependence, and with demand expected to grow ~20% annually alongside a ~2.4x increase in local sourcing, domestic bare PCB manufacturing is projected to grow at ~45% CAGR over the next ve years.
- Indian manufacturers are increasingly focused on complex multilayer, ex and HDI PCB categories to move up the value chain and differentiate technologically.
- The Electronics Component Manufacturing Scheme (ECMS), notied in March 2025, carries a scal outlay of ~US$2.6bn and aims to deepen India’s electronics value chain by promoting domestic manufacturing of critical components, sub-assemblies and raw materials.
India runs a US$54bn electronics trade deficit, but this is driving a major manufacturing push. Electronics production (~US$115bn) is growing fast, with EMS and component localization gaining momentum. After success in mobile assembly, the next growth phase is components, especially PCBs, where India is ~88% import dependent. Domestic PCB manufacturing is set to grow ~45% CAGR, supported by incentives, anti-dumping duties, and rising demand. Large players (Amber, Kaynes, Syrma) are investing heavily, while the US$2.6bn ECMS policy accelerates scale-up. Early movers can gain strong ROCE, first-mover advantage, and help India emerge as a global electronics hub.
Industry Overview
India’s electronics production is set to grow ~25% CAGR to ~US$450bn by FY30E, supported by strong government incentives and a push to reduce the US$54bn trade deficit. The China+1 strategy is accelerating global sourcing from India by players like Apple, Samsung, and global IT hardware OEMs. Growth will be driven by rising domestic consumption, fast-growing exports, and import substitution, with imports’ share of consumption declining meaningfully. A young, skilled, and cost-competitive workforce and rapid scale-up in electronic components (~41% CAGR) position India as a global manufacturing hub.
Addressable Opportunity for EMS
India has largely solved final (box-build) assembly and is now moving up the electronics value chain. EMS outsourcing is rising, driven by higher electronics content, cost advantages, and OEM focus on design and branding. Strategic policies are enabling EMS players to gain share and reduce reliance on PCBA imports. While bare PCBs remain ~88% import-dependent, strong government incentives and localization initiatives are accelerating domestic manufacturing, strengthening self-reliance, and deepening India’s electronics ecosystem.
PCB – An Overview
PCBs are the backbone of electronics, spanning bare PCB manufacturing and PCBA. India’s domestic bare PCB market is set to grow ~45% CAGR to ~US$4bn by FY29E, driven by strong electronics demand, China+1, and import substitution (local penetration rising from ~13% to ~31%). Government incentives and duties support localization, while Indian players are moving into high-value multilayer and flex PCBs. Domestic sourcing also offers shorter working capital cycles, JIT delivery, proximity to customers, and customization advantages over imports.
Demand for Bare PCB in India
Multi-layer and flex PCBs are expected to grow ~27% and ~30% CAGR (FY24–29E), driven by rising electronics complexity, miniaturization, and demand for HDI and space-efficient designs. Indian manufacturers are pivoting to high-complexity, high-realisation PCBs, where technical barriers, skilled manpower needs, and long customer qualification cycles limit low-cost Chinese competition. This shift reduces import risk and, supported by government incentives and duties, positions domestic bare PCB manufacturing as an ~18% ROCE business.
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