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Stocks in the Electronics Manufacturing Services (EMS) sector rallied sharply in today’s session after Union Finance Minister Nirmala Sitharaman, in her budget speech in the Lok Sabha, announced the launch of India Semiconductor Mission 2.0.

The move aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design.

In reaction, shares of Syrma SGS Technology gained 7% to ₹812 per share, while those of PG Electroplast, Dixon Technologies, Kaynes Technology, and Amber Enterprises also rallied up to 6.5%.

The Centre will also expand the electronics component manufacturing scheme (ECMS) to a net outlay of ₹40,000 crore, less than a year after the programme was rolled out, underscoring the government’s push to deepen electronics manufacturing and reduce import dependence.

Finance minister Nirmala Sitharaman said, “India Semiconductor Mission 1.0 expanded India’s semiconductor sector capabilities. Building on this, we will launch ISM 2.0 to produce equipment and materials, design full-stack Indian IP, and fortify supply chains. We will also focus on industrial research and training centres to develop technology and skilled workforce.”

On the electronics components outlay, Sitharaman added, “The ECMS launched in April 2025 with an outlay of 22919 crore, already has investment commitments at double the target. We propose to increase the outlay to 40,000 crore to capitalize on this momentum.”

In late January Union Minister for Electronics and Information Technology Ashwini Vaishnaw said that India's semiconductor design program has reached a significant level of achievement, enabling the nation to take off in the global chip industry.

Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, said, "The budget reinforces policy continuity rather than delivering incremental surprises. The continued push toward fabrication, ATMP, and electronics manufacturing strengthens India’s long-term positioning in global supply chain diversification, which matters far more for FDI than near-term incentives."

"Markets are likely to reward companies with tangible execution and balance-sheet capacity rather than thematic exposure alone. Listed beneficiaries remain largely indirect, including Tata-linked manufacturing plays, CG Power, Dixon Technologies, and Kaynes Technology," Sonam further stated.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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