Budget 2026: Electronics manufacturing gets a Rs 40,000 crore boost; EMS stocks surge up to 7%

New Delhi: Union Finance Minister on Sunday will presenting the Budget announced an expansion of its Electronics Component Manufacturing Scheme (ECMS) to Rs 40,000 crore.

What did she during the speech?

Union Finance Minister Nirmala Sitharaman during her speech announced an increased in outlay to Rs 40,000 crore.

"The electronics components manufacturing scheme launched in April 2025, with an outlay of 22,919 crores, already has investment commitments and double the targets. We propose to increase the outlay to 40,000 crores to capitalize on this." 

The Electronics Component Manufacturing Scheme (ECMS), which was notified by the Ministry of Electronics and Information Technology (MeitY) on April 8, 2025 originally had an outlay of Rs 22,919 crore.

Under the new Electronics Manufacturing Scheme (EMS), the India's Semiconductor Mission (ISM) 2.0, will focus on manufacturing equipment and materials, design full-stack Indian intellectual property (IP).

By this, it will increase the independence and self reliance of India in developing and manufacturing of semiconductor technology.

The scheme aims to build a robust electronics component ecosystem in the country by offering targeted incentives across 11 key segments, including printed circuit boards (PCBs), capacitors, resistors, display modules, and other critical components.

What happen to the stocks?

Following the announcement in Budget 2026, Electronics Component Mausfacturing stocks such as Kaynes Technology, Dixon Technology, PG Electroplast, Amber Enterprises and Syrma SGS Technology rose between 3.25 per cent and 7 per cent.