How Electronic Manufacturing in India Drives Global Growth

J.S. Gujral, Managing Director, Syrma SGS, in an interaction with India Manufacturing Review, shared his views on the fast changing Electronic Manufacturing Services (EMS) industry in India, particularly factors relating to its growth, effective and impactful Government programs such as Make in India and PLI to strengthen domestic manufacturing. Gujral also talked about future business opportunities related to global partnerships, how Indian EMS companies are successfully competing on cost, scale, and quality, and the sub-sectors driving the demand, including consumer electronics, automotive, telecom, and IoT.

With over three decades of leading entrepreneurship, J.S. Gujral has forged a distinguished career in the electronics manufacturing industry. Starting over 34 years ago as Founder Director of SGS Tekniks, and he continues to lead Syrma SGS today with the same vision of innovation, excellence, and growth.

What factors are driving the rapid growth of Electronic Manufacturing Services (EMS) in India?

India has electronic manufacturing services for several decades, with a presence spanning over 35 years. However, growth has occurred in the last five to seven years as the Government of India recognized the need to foster domestic manufacturing. So in response, the government launched a range of measures aimed at fostering growth in this sector. In developing nations, where a significant part of the population is seeking employment, it is critical to create blue-collar jobs. No economy can be sustained on a white-collar workforce alone. Hence, manufacturing must be positioned strategically in government policy.

In the manufacturing industry, electronics is notably important. Considering the consequences of foreign exchange management, job creation, and ecosystem growth, the government has identified electronics manufacturing as a focus area. By looking at Japan, Korea, Singapore, Taiwan, China, Vietnam, and Thailand, we can see that these countries’ economic growth was generated mainly by electronics manufacturing. Generally, large industrial growth derives from the automotive industry and electronics.

In response to this trend, the Government of India thoughtfully chose to prioritize electronics manufacturing. Geopolitical considerations reinforced this emphasis as global corporations sought to diversify supply chains, lessening their reliance on one country. In summary, these factors have led to strong and extraordinary growth of India’s electronics sector in the last four to seven years.

How is India positioning itself as a global hub for EMS compared to China, Vietnam, and other Asian economies?

India has both advantages and challenges in the electronics manufacturing sector. The advantages include a large domestic market, an expanding pool of skilled workers who can be reskilled in high-end manufacturing, and rising income levels, which are driving consumer demand for electronics as they become part of daily life. Other positive things include India's democratic system and the rule of law.

On the other hand, India does not fully have an electronics ecosystem, which creating a structural barrier for domestic companies. This gap is being filled by government incentives such as the Production-Linked Incentive scheme, or previous policies such as the Modified Special Incentive Package Scheme (MSIPS). These policies ultimately seek to stimulate the development of the solid electronics ecosystem, including component manufacturing that is expected to develop as the industry develops.

In the past years, electronics manufacturing has become a core focus within India. However, as of 2025, various companies are still hesitant to invest in component-level manufacturing, such as printed circuit boards (PCBs) or semi-processed components, despite the market now being stable. India may have some disadvantages with raw materials, but it is still extremely competitive with labor costs, availability of power, government support and domestic demand. It is a major and viable option for foreign companies to enter the electronics manufacturing sector. It is a significant and viable destination for international firms to manufacture electronics.

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What role do government initiatives like Make in India and PLI schemes play in boosting EMS growth?

The PLI scheme is a tactical method of dealing with the structural issues for Indian companies created by the fact that there is no fully established electronics ecosystem. During the time of the PLI, Indian companies should utilize this window to develop the necessary skill sets, domain expertise, and an operational scale. The aim is to ensure that after the completion of the PLI scheme, these companies can be competitive and sustainable on a global scale. At that point, the domestic electronics ecosystem is also expected to have developed further, which will provide greater sustainability for continued growth and competitiveness.

What new business opportunities can enterprises unlock by partnering with EMS providers in India?

Partnering with Indian firms can provide global companies with significant benefits, such as access to a vast domestic market and cost-competitive environment. Moreover, India offers companies a valuable risk mitigation strategy, specifically for companies seeking to reduce their reliance on a single country. While other countries, such as Vietnam, the Philippines, Cambodia, and Thailand, have competitive labor markets, these countries lack significant local demand. In contrast, India's strong domestic demand is a valuable strategic advantage, making the country a highly attractive country for global investment in electronics manufacturing.

How are Indian EMS companies competing with global players in terms of cost, scale, and quality?

Indian businesses have been exporting products since about 1996, and the companies are competing favorably with global organizations based on cost, quality, and delivery terms. The key challenge is mass producing products at a global standard. India's success in mobile phone production shows that domestic firms can fulfill larger needs. Indian firms have been exporting for over thirty years, meeting customer expectations of quality, delivery, and every other requirement that comes with product. The key step is to scale production rapidly to compete on a global basis.

Also Read: The Impact Of AI And Machine Learning Technology In Revolutionizing Manufacturing Practices

Which electronics sub-sectors (consumer electronics, automotive, medical devices, telecom, IoT) are driving EMS demand in India?

In India, the demand for electronics is mainly from the consumer and automotive sectors. The automotive industry is growing, with even more growth from the electric vehicle (EV) revolution, which is increasing the value of electronics sold per unit. Moreover, as the country continues to develop, demand for electrification is operating with a natural increase in demand for energy metering solutions. Domestically, the largest proportion of demand is growth from consumer electronics, including telecom and automotive, followed by industrial electronics. Other segments, including medical devices and Internet of Things (IoT) applications, are present but currently represent a smaller share of overall demand.

How can enterprises leverage India’s EMS ecosystem to reduce supply chain risks?

At present, global supply chains are extremely interconnected, yet a large percentage of that supply is from China. China is roughly 25–30% of global industrial manufacturing and perhaps even more in electronics. Indian companies can also strategically partner with existing global firms, including Chinese firms, to access advanced technology. Instead of creating new expertise from scratch, domestic firms can scale their operations and provide global partners with holistic solutions. In recent years, more global companies are looking for solutions, and not just manufacturing. If India is able to adopt this approach, it can help to alleviate global supply chain risks. However, this transition will be gradual as it is a long-term journey.

Would you like to share more insights about this electronics manufacturing?

Electronics manufacturing has been present in India for nearly 35-40 years, with exports to the United States and other international markets from the beginning. Indian companies are competitive and have strong capabilities to adopt the latest technologies. Indian firms, with adequate capital and a solid growth mindset, are well-equipped to take advantage of current opportunities. This period can be considered a golden era for manufacturing in India, particularly in the electronics sector.