India Set to Launch EMS 2.0: A Leap in Electronics Manufacturing

India is advancing to EMS 2.0, shifting focus from assembling to manufacturing electronic components. A new Production Linked Incentive (PLI) scheme aims to increase value addition and reduce imports. This initiative supports India’s vision of becoming a global electronics manufacturing hub.

India is poised to transition into EMS 2.0, marking a significant leap in its electronics manufacturing sector. According to a Phillip Capital report, the government aims to shift the focus from assembly to actual manufacturing of electronic components.

The introduction of a new Production Linked Incentive (PLI) scheme is underway, targeting a value addition increase to 35-40%, up from the current levels of 18-20%. This initiative is part of a broader strategy to reduce reliance on imported components, which have been subjected to tariffs and other challenges.

Although India has excelled in assembling electronics like mobile and consumer devices, it remains dependent on imported components. This new phase, EMS 2.0, aligns with India's aspirations to become a global electronics manufacturing hub, as existing schemes such as SPECS and PLI for Large-Scale Electronics Manufacturing near their conclusion.