Electronic Contract Manufacturing in India to Grow Over 6-Fold by 2025
Electronic Industries Association of India (Elcina) has forecasted that the electronic contract manufacturing sector(EMS) in the country is projected to grow by over six-fold to USD 152 billion by 2025. Globally, the electronic manufacturing services (EMS) sector was valued at USD 832 billion in 2019 and is estimated to grow to USD 1,055 billion by 2025.
“Elcina predicts that the Indian EMS industry will gallop from USD 23.5 Bn in 2019-20 to USD 152 Bn by 2025. This effectively means that it has the potential to grow from less than 3 percent of the global industry to about 14 percent within 5 years,” the Electronic Industries Association of India (Elcina) said in a statement.
Electronics and IT Secretary Ajay Prakash Sawhney, while releasing the ‘EMS Task Force Report’ by Elcina, emphasized the need to manufacture printed circuit board (PCB) assemblies within the country and reduce import dependence.
Sawhney mentioned that there was a huge opportunity in products such as servers, laptops and tablets and encouraged the industry to take up these high value and large volume products, the statement said.
“This would mean that India would serve 25 percent of the global mobile market which was estimated to be valued at USD 415 billion in 2025,” the statement said, adding that similar support for non-mobile EMS exports would enable India to make a mark in the world market.
“Electronics Manufacturing Sector is the key link between components and finished equipment. All major OEMs are keen to develop alternative sources to prevent uncertainty and supply chain disruptions. Covid has taught us not to depend on a single source. India is well placed to service this market which has grown exponentially with the enhanced role of EMS in electronics manufacturing,” Elcina Secretary-General Rajoo Goel said.
Elcina Electronics Manufacturing Sector Task Force Chairman Sanjiv Narayan underlined the importance of support to the sector for expanding its reach into export markets, which are largely controlled by China and Vietnam.
China exports USD 685 billion in electronics to the world. India has set a target of USD 100 billion exports of mobiles alone by 2025, which is possible with the support of the production-linked incentive (PLI) scheme, Elcina said.
