EMS Stocks: Can India’s Electronics Boom Drive More Gains?

India’s electronics manufacturing services sector is emerging as a major growth opportunity, with the industry expected to see strong long-term expansion. Pankaj Pandey, Head of Research, ICICI Direct, explains why government policies, rising domestic manufacturing and higher value addition could benefit EMS companies. Stocks such as Dixon Technologies, Kaynes Technology and Amber Enterprises have already seen a sharp re-rating, but investors are now watching valuations and execution closely. He also highlights the potential impact of lower GST rates on mobile phones and the upcoming festive season on consumer electronics demand. Supply-chain challenges, technology partnerships and dependence on China remain key risks for the sector.