More policy push key to component mfg

Fiscal Incentives

♦ Govt needs to boost localisation

♦ Value addition in India

♦ Centre reopened PLI window for white goods

New Delhi: Backed by robust government measures, the domestic electronic manufacturing services (EMS) market is poised to grow at a 32 per cent compound annual growth rate (CAGR) in the FY22-FY27 period to reach $72.2 billion from $17.5 billion in FY22, a report showed on Monday.

According to the report by MotilalOswal Financial Services, to further boost localisation and value addition in India, additional initiatives will be necessary to promote component manufacturing in the country, where the government is already working on various schemes.

“Component manufacturing has not shown the same growth as it requires an upfront initial capex and has lower asset turnover ratios with a gestation period of 1-2 years from investment to production.