**Budget 2026: EMS Stocks Rally on ₹40,000 Cr Component Scheme Boost** **Sector Update** Electronics manufacturing services (EMS) stocks surged in Sunday’s special trading session following Finance Minister Nirmala Sitharaman’s Union Budget 2026-27 presentation. The government announced a near-doubling of the **Electronics Component Manufacturing Scheme (ECMS)** outlay to **₹40,000 crore**, up from the initial allocation of roughly ₹23,000 crore. **Market Reaction** Investors responded aggressively to the policy continuity and enhanced fiscal support. Key gainers included: * **Syrma SGS Technology:** +6.7% * **Dixon Technologies:** +5.4% * **Amber Enterprises:** +4.5% * **Kaynes Technology:** +3.6% * **PG Electroplast:** +2.6% **Scheme Performance & Expansion** The ECMS, originally notified in **April 2025**, has witnessed overwhelming industry participation. Government data indicates the scheme attracted investment proposals worth **₹1.15 lakh crore** by late 2025—nearly double the initial target. The expanded outlay aims to capitalize on this momentum, accelerating India’s shift from final assembly to higher-value component production. **Strategic Focus: ISM 2.0** Alongside the component push, the budget unveiled the **India Semiconductor Mission (ISM) 2.0**. This next phase focuses on the "upstream" ecosystem: developing semiconductor manufacturing equipment, specialized materials, and full-stack intellectual property (IP). The combined policy thrust reinforces the government's long-term roadmap to domesticate the supply chain and reduce import reliance. **Analyst View** Market participants view the increased allocation as a structural positive for EMS players backward integrating into components. The policy is expected to improve margins and deepen local value addition, benefiting companies like Dixon and Kaynes that have aggressively expanded their manufacturing footprint.