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Cost-effectiveness and burgeoning domestic electronics market coupled with favorable Government policy support is expected to have a positive impact on the EMS market
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Favorable Government policies, Make in India initiative and rising costs in China are the key factors for rise in local manufacturing. EMS market is expected to grow at a CAGR of 38.1% till FY23 from the current market value of INR 56,000 Crore. Mobile phones, Telecom, and Consumer electronics and appliances were the sectors that contributed to EMS growth in the previous years and will continue to do so in the future. The growth of the EMS industry is a result of a number of factors like increased use of electronics, growing domestic demand for mobile phones, personal computers, consumer, medical, strategic and automotive electronics. Increase in demand for telecom infrastructure projects, rising labor cost in other parts of the globe, tendency by bigger OEMs to outsource manufacturing instead of building their own infrastructure are other important factors driving growth.
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