Semiconductor push, government support driving EMS sector’s growth, but valuation remains a concern

India’s electronic manufacturing services (EMS) sector is growing at a healthy pace, supported by rising demand for electronics and strong orders from sectors such as defence, aerospace, artificial intelligence (AI), automobiles, electric vehicles and clean energy. According to KPMG, one of the Big Four accounting firms, the Indian EMS industry has expanded from $10-12 billion in FY2019-20 to $40-45 billion in FY2024-25.

Yet, India accounts for just 5-6% of the global EMS market, leaving room for growth. The share is expected to rise over the coming decade, with KPMG projecting the Indian EMS industry to cross $150 billion by FY2029-30.