Why Ajay Bagga Is Bullish On EMS Stocks | PLI, Semiconductors & India's Growth Story

India's Electronics Manufacturing Services (EMS) sector continues to attract investor interest despite rich valuations. Ajay Bagga, Sr. Market Veteran, believes government PLI incentives, semiconductor partnerships, and rising manufacturing volumes remain key long-term growth drivers. However, he notes that the business operates on thin margins and still depends heavily on imported components from China. As India increases domestic value addition and expands its component ecosystem, the sector could see another phase of growth and re-rating. Investors should focus on companies with strong execution, improving localization, and sustainable profitability rather than chasing momentum alone.