📊Executive Summary

India's electronics manufacturing sector is facing significant challenges as profit margins shrink and growth slows, raising concerns about the sustainability of its 'Make in India' initiative. Key players like Dixon Technologies and Kaynes Technology have seen share prices drop over 15% this year, signaling investor skepticism. Rising input costs and a heavy reliance on imported components are major factors contributing to this downturn. The impending expiration of government production-linked incentive (PLI) schemes, particularly for mobile phone manufacturing in 2026, adds to the uncertainty. While the government is launching initiatives like the Electronics Components Manufacturing Scheme (ECMS) to bolster domestic supply chains, the industry's ability to localize key components and innovate will be crucial for its long-term success. Without continued policy support and deeper reforms, the momentum of India's electronics manufacturing growth may falter amid increasing global competition....