India's Booming EMS Sector: Growth Amid US Tariffs and Global Shifts in Electronics Supply Chains

As the electronica India event unfolds in Bangalore on September 17, 2025, the spotlight falls on the electronic manufacturing services (EMS) industry, which has emerged as the fastest-growing segment in India's electronics business, both in terms of growth rate and market size. India holds the position of the world's second-largest smartphone manufacturer, though it does not produce any semiconductor components or key chips domestically. Over the past decade, the country has led in EMS and assembly operations, meeting not only its own demand for smartphones and other electronics but also exporting significant volumes.

A 50% tariff imposed by the US on Indian products poses a threat to the export growth of India-made smartphones. However, this is unlikely to hinder the overall industry momentum, supported by robust local demand and opportunities in other global regions. The EMS sector in India is projected to reach US$100 billion within the next three years, with mobiles accounting for 40% to 50% of the share, consumer electronics at 10% to 15%, and IT at 10%. This expansion offers opportunities for strategic and financial investors.

The sector's development traces back to ar...