Electronic Manufacturing Services – Sector Update – Structural tailwinds; shift toward high-value ESDM
Published on 12 Oct 2026
We remain structurally positive on the Indian EMS/ESDM sector, supported by the convergence of electronics localization, semiconductor ecosystem development, mobile manufacturing, defense indigenization and rising demand for high-reliability electronics. Importantly, the opportunity is gradually moving beyond PCB assembly and box-build toward components, semiconductor packaging, industrial/defense electronics, and mission-critical applications.
We believe the EMS sector is entering the next phase of its growth cycle – from scale-led assembly to capability-led, high-value ESDM. Government support through MPMS + ECMS + Semicon 2.0 + defense indigenization, combined with global supply-chain diversification, should support sustained localization and outsourcing opportunities.
