loader2
Login Open ICICI 3-in-1 Account
Text Size
Text to Speech
Color Contrast
Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Electronics and consumer durable: strengthens India’s positioning as a manufacturing hub

ICICIdirect Research 19 Feb 2026 DISCLAIMER

With favourable US-India tariff rate on relative basis coupled with India-EU FTA, strengthens India’s positioning as a manufacturing hub in the global electronics and semiconductor supply chain. This is further strongly supported by government’s sustained policy support and production-linked incentives such as ECMS and ISM 2.0. As per Niti Aayog, the US and the EU together have a combined market size of ~$1.6 tn, about a third of the total global electronics demand. If able to convert portion of the opportunity, this creates significant headroom for exports which is still at nascent stage for most consumer durable and EMS companies.   
While smartphones and select semiconductor categories remained outside the immediate tariff ambit, the broader trade alignment materially enhances India’s relative competitiveness in supply chain and positions it as a China+1 alternative. For other electronics manufacturers and consumer durables, India is now comparatively better placed on the tariff front versus competing geographies, enhancing export competitiveness.
Against this backdrop, EMS players such as Dixon Technologies, Syrma SGS Technology, Kaynes Technology and Amber Enterprises are well positioned to benefit. Additionally, consumer durable players like LG Electronics have articulated its ambition to meaningfully scale up exports, aided by improving geopolitical conditions and expanding manufacturing capabilities in India. We continue to remain positive on electronics space from medium to long term perspective with beneficiaries being Dixon, Kaynes, Amber, Syrma and LG Electronics.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere