New Delhi, June 8 -- India's Electronic Manufacturing Services (EMS) sector has grown sharply over the past five years but faces a structural ceiling unless it moves beyond assembly into deeper, design-led manufacturing, according to a new report by KPMG in India released on Sunday.

The report, titled India's EMS Opportunity: From Assembly Hub to Integrated Manufacturing Powerhouse, finds that while the country has built considerable scale, its participation in higher-value activities - such as component manufacturing, product design, and intellectual property - remains limited.

Rapid Growth, but a 'Scale Without Depth' Problem

India's EMS market has grown from approximately USD 10-12 billion in FY2020 to USD 40-45 billion in FY2025, a...