India EMS market to top $150 bn by FY30, KPMG says

What the KPMG report projects

India’s electronics manufacturing services (EMS) industry could expand more than threefold to cross $150 billion by fiscal 2030, according to a KPMG report released on Wednesday. The projection is based on a mix of domestic demand growth, policy support, and a shift in global sourcing strategies as companies diversify supply chains beyond China. KPMG’s report is titled India's Electronic Manufacturing Services (EMS) opportunity: From assembly hub to integrated manufacturing powerhouse. The report places India’s EMS market at about $10-45 billion in FY25, highlighting how quickly the segment has scaled in recent years. KPMG also points to exports as a key contributor to the next phase of growth, alongside policy incentives. The report frames the opportunity as moving from assembly-led activity to deeper manufacturing capability.

FY25 baseline and FY30 target

KPMG estimates India’s EMS market at $10-45 billion in FY25 and expects it to surpass $150 billion by FY30. That step-up implies a rapid capacity build-out across manufacturing lines, vendor ecosystems, and supply-chain reliability. The report links the growth outlook to three drivers: exports, policy incentives, and diversification of supply chains. India’s consumer market remains an important pull factor, since domestic demand can support scale even when external demand is volatile. Policy support is described as a material factor in shaping investment decisions, especially for large, multi-year manufacturing projects. The China+1 strategy, where global companies build redundancy outside China, is another tailwind cited by the report. Together, these factors make FY30 a key milestone for investors tracking India’s manufacturing ambitions.

India’s current share in global EMS

Despite the recent scale-up, the report notes India currently accounts for about 5-6% of global EMS manufacturing. That relatively small share is presented as “headroom for growth,” because it suggests India can gain share if it improves competitiveness and expands capacity. For market participants, this number is a benchmark for measuring India’s progress against established EMS hubs in Asia. It also indicates that much of the global EMS demand is still serviced outside India, leaving room for incremental outsourcing and vendor diversification. The share statistic matters because it links India’s domestic manufacturing push to the larger global EMS value chain. Any sustained increase in share would require consistent execution on cost, quality, delivery timelines, and supply continuity.

Global EMS outlook provides the backdrop

KPMG’s report also outlines a larger global expansion. It estimates the international EMS market at about $140-650 billion in 2025. By 2030, the global EMS market is expected to reach $1 trillion, as per the same report. This rising global base is important because India’s growth ambitions are partly export-driven, and exports depend on global demand growth and shifting sourcing patterns. A larger global market also increases the scope for multiple hubs to scale without relying on share gains alone. But it simultaneously raises the competitiveness bar, since global OEMs and large EMS players compare locations on speed, cost, compliance, and supplier depth.

Import dependence remains a key constraint

One of the report’s sharper observations is India’s continued dependence on imported components. KPMG notes that India still relies on imports for around 80-95% of key components required for electronics manufacturing. This dependence can affect lead times, cost structures, and the ability to scale quickly during demand peaks. It also underscores why value addition is a central theme for India’s electronics policy and for private-sector investment plans. A high import share can limit local manufacturing benefits unless it is gradually reduced through domestic component ecosystems. The report’s numbers highlight that manufacturing scale alone is not sufficient; component availability and local sourcing matter for competitiveness.

What the report suggests companies should focus on

KPMG’s report points to the need for stronger investment in engineering and design capabilities. It also suggests closer alignment with international value-based systems, reflecting the need to integrate into global supply chains rather than operating as a standalone assembly base. The emphasis on engineering and design is significant because these capabilities typically support higher value addition and improve manufacturing resilience. Linking up with global value chains can improve demand visibility and create stable order pipelines for Indian facilities. This focus also relates to compliance and process consistency, which are critical for electronics customers with strict quality requirements.

Key facts at a glance

Market impact and what investors track

For listed electronics manufacturers, EMS players, and component suppliers, the $150 billion FY30 projection sets a clear scale target that can shape capex and partnership decisions. The combination of policy incentives and supply-chain diversification can influence where global OEMs place incremental orders, particularly for high-volume products where capacity and reliability matter. At the same time, the 80-95% import dependence figure is a reminder that margin stability and delivery performance can still be exposed to external supply constraints. Investors are likely to track progress on local component ecosystems, because localisation directly affects value addition and supply-chain control. The report’s emphasis on exports also means market participants will monitor India’s ability to meet global customer requirements on quality, compliance, and timelines.

Why the FY30 projection matters

KPMG’s view suggests India’s EMS sector is moving into a phase where scale, integration, and capability depth become the differentiators. A jump from $10-45 billion in FY25 to over $150 billion by FY30 implies a significant build-out of manufacturing capacity and supporting ecosystems. But the report’s import-dependence data shows that building a stronger upstream component base is central to sustaining growth. The focus on engineering and design indicates that India’s competitiveness will depend not just on assembly volumes, but also on higher-value functions. If India can improve integration with global value chains while reducing critical import dependence, the sector’s growth path could become structurally stronger.

Conclusion

KPMG’s report projects India’s EMS market to rise from $10-45 billion in FY25 to over $150 billion by FY30, supported by domestic demand, incentives, exports, and supply-chain diversification. It also flags India’s 5-6% global share and high component import dependence of about 80-95% as key context for the opportunity. The next set of milestones will be reflected in how quickly manufacturers scale capacity and how effectively the ecosystem expands into components, engineering, and design.