Budget Proposal Lifts Investor Sentiment in Electronics Space
Shares of electronic manufacturing companies moved higher on Saturday after Finance Minister Nirmala Sitharaman proposed a sharp increase in government spending on electronics manufacturing in the Union Budget 2026-27. The outlay for the sector has been proposed at ₹40,000 crore for the upcoming financial year.The announcement reinforced the government’s ongoing push to strengthen domestic electronics production, triggering broad-based buying interest across listed electronics manufacturing firms.
Key Electronics Stocks Rally on BSE
Several frontline and mid-sized electronics manufacturing stocks recorded notable gains during the session:- Syrma SGS Technology surged 5.95% to ₹806.35
- Dixon Technologies (India) Ltd advanced 4.21% to ₹10,885
- Kaynes Technology India climbed 3.82% to ₹3,608.90
- PG Electroplast gained 2.59% to ₹561.75
- DCX Systems rose 2.06% to ₹180.95
- Cyient DLM increased 1.04% to ₹379.70
High-Tech Tool Rooms Planned to Support Capital Goods Manufacturing
While presenting the Union Budget for 2026-27, the Finance Minister also announced the establishment of high-tech tool rooms at two locations. The initiative is aimed at providing additional momentum to capital goods manufacturing and strengthening the electronics supply chain within the country.Electronics Manufacturing Sees Rapid Growth in India
The proposed budgetary support comes at a time when electronics manufacturing in India has seen substantial expansion. Mobile phone manufacturing has recorded nearly a 30-fold rise in production value, increasing from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25.iPhone exports from India touched ₹2.03 lakh crore in 2025, almost doubling compared with ₹1.1 lakh crore exported in calendar year 2024.
Mobile phone production in the country is expected to reach approximately ₹6.76 lakh crore by the end of the current financial year. This includes exports exceeding USD 30 billion, or around ₹2.7 lakh crore.
Semiconductor Projects Gain Momentum
As of August 2025, a total of 10 semiconductor manufacturing and packaging projects have been approved across six states. These projects involve cumulative investments of around ₹1.6 lakh crore, underscoring the scale of India’s push toward building a comprehensive electronics and semiconductor ecosystem.The proposed increase in budgetary allocation for electronics manufacturing is seen as aligning with this broader expansion, supporting both production growth and export ambitions in the sector.
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