Tracking Budget cheer amid a market slide, electronics stocks surged as higher spending, ISM 2.0 and ECMS boost hopes for manufacturing-led growth in India
The shares of listed electronics manufacturing companies advanced on February 1, 2026, after the Union Budget 2026-27 signalled a sharp increase in government spending on the sector. The gains came even as broader equity markets ended the special Budget Day session sharply lower.
Syrma SGS Technology led the rally, rising 5.95% to ₹806.35 on the BSE. Dixon Technologies (India) climbed 4.21% to ₹10,885, while Kaynes Technology India gained 3.82% to ₹3608.90. PG Electroplast rose 2.59% to ₹561.75, DCX Systems added 2.06% to ₹180.95, and Cyient DLM edged up 1.04% to ₹379.70.
The buying interest followed Finance Minister Nirmala Sitharaman’s announcement that the outlay for electronics manufacturing (ECMS scheme) would be raised to ₹400 billion in FY 2026-27. Presenting the Budget, she also said that high-tech tool rooms would be established at two locations to support capital goods manufacturing. The much-anticipated India Semiconductor Mission (ISM) 2.0 was announced, too.
The proposals reinforce the government’s sustained push to expand domestic electronics production, spanning mobile phones, components and semiconductors.
Over the past decade, the scale of electronics manufacturing in India has grown rapidly. Mobile phone manufacturing alone has recorded a near 30-fold increase in production value, rising from ₹180 billion in FY 2014-15 to ₹5.45 trillion in FY 2024-25.
Exports have expanded at a similar pace. iPhone exports from India reached ₹2.03 trillion in 2025, almost double the ₹1.1 trillion exported by Apple in calendar year 2024.
Overall, mobile phone production is expected to touch about ₹6.76 trillion by the end of the current financial year, including exports of more than US$30 billion, or roughly ₹2.7 trillion.
Progress is also visible in semiconductors. As of August 2025, 10 semiconductor manufacturing and packaging projects had been approved across six states, involving cumulative investments of around ₹1.6 trillion.
While electronics stocks gained, the broader market reacted negatively to Budget announcements. The Sensex closed down 1.88%, and the Nifty fell 1.96%, as investors assessed tax changes and sector-specific measures.
