Shares of Electronics Manufacturing Services (EMS) firms, including Kaynes Technology India and Syrma SGS Technology, rose on Tuesday, October 28, bucking the broader market’s weakness after the government approved the first seven projects under the Electronics Components Manufacturing Scheme.
Union Electronics and IT Minister Ashwini Vaishnaw stated that the government cleared projects worth ₹5,532 crore out of 249 proposals received under the scheme. The initiative is expected to cut India’s import bill by around ₹20,000 crore, according to PTI. Notably, four projects by Kaynes Circuits India were approved, covering multi-layer and high-density printed circuit boards (PCBs), camera modules, and laminates. Other approved projects include SRF, Syrma Strategic Electronics, and Ascent Circuits, the ministry added.
India’s EMS sector has witnessed rapid growth in recent years, fueled by supportive government policies such as the Production-Linked Incentive (PLI) scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). This momentum is further strengthened by India’s cost competitiveness, skilled workforce, and improving infrastructure. Estimates suggest that India’s share of the global EMS market could quadruple to 7% by 2026, reaching $80.2 billion, driven by a booming domestic electronics market expected to grow 25.5% to $282 billion, supported by both domestic consumption and export demand.
