Jyoti CNC Automation, Syrma SGS: EMS stocks rally up to 6% on Centre's ₹7,877 crore electronics manufacturing push

Shares of electronics manufacturing services (EMS) companies were trading higher on Tuesday, August 18, as the government has cleared 31 fresh proposals under the electronics components manufacturing scheme (ECMS), entailing investments of ₹7,877 crore, S Krishnan, the secretary in the IT ministry, said on Monday.

According to Krishnan, the government has received a total investment proposal of ₹69,548 crore, against a target of ₹59,350 crore.

"Currently, we have cleared almost 31 applications, which have been dealt with in this particular session or in this particular gathering, and in total, the investment that we are talking about is ₹7,877 crore," Krishnan said at an event jointly organised by Elcina and the Ministry of Electronics and Information Technology (MeitY).

The approved proposals include those of GX Group, Centum Electronics, Ennovi Mobility Solutions, Allied Engineering Works, Globe Capacitors, Syrma SGS Technology, Rosenberger Interconnect, Sensata Technologies, and Britannia RFID Technologies, among others.

Krishnan said the fresh tranche of investment will be spread across 10 states.

These approvals will result in a total output or production of goods worth ₹82,243 crore and lead to the generation of close to 10,000 jobs, he said.

What is Electronics Components Manufacturing Scheme (ECMS)?

The Electronics Components Manufacturing Scheme (ECMS) is a flagship financial incentive program launched by the Ministry of Electronics and Information Technology (MeitY) to build a self-sustaining electronics supply chain and manufacturing ecosystem in India.

It moves the nation beyond simple assembly toward high-value domestic production of critical parts, sub-assemblies, and capital equipment.

Union Budget and ECMS

The Union Budget 2026–27 announced an increase in the outlay for ECMS to ₹40,000 crore, signalling a strong policy push to deepen domestic manufacturing capacity.

The press release said that over the past eleven years, India has rapidly transformed into a major electronics-manufacturing hub, achieving nearly a six-fold increase in production.

The sector has expanded its industrial base, created 25 lakh jobs, and emerged as a key driver of employment and economic growth.

"This progress is reflected in India’s export performance and its growing integration with global value chains. Strategic government initiatives and consistent policy support have strengthened local manufacturing, supported export expansion, and attracted significant global investment. ECMS seeks to build on this momentum by reinforcing the domestic component ecosystem and positioning India as a credible global hub for advanced electronics manufacturing," PIB said in its press release.

With the ambitious vision of building a $500 billion domestic electronics manufacturing ecosystem by 2030–31, India is poised to emerge as a global technology leader, innovating for the world while creating vast opportunities at home, the release said.

Sectoral outlook: Electronics as India’s leading export category

As pointed out in the Economic Survey 2025-26, electronics have emerged as India’s third-largest and fastest-growing export category in 2024–25, rising from the seventh position in 2021–22.

What you need to know

The ₹40,000 crore announced in the Union Budget is the government's incentive outlay for the Electronics Components Manufacturing Scheme (ECMS), while the ₹69,548 crore figure refers to the total investment commitments proposed by companies under the scheme.

In other words, the Centre is providing incentives to catalyse much larger private-sector investments, which have already exceeded the scheme's original target of ₹59,350 crore.

Stocks in focus

Shares of Jyoti CNC Automation, Syrma SGS Technology, and Centum Electronics were trading in the green on Tuesday.

At 10:44 AM, Jyoti CNC Automation shares traded nearly 5% higher at ₹899.65 apiece on the NSE. The stock hit a high of ₹909.90 in the early session, up 6%.

Syrma SGS Technology shares were up 1.85% at ₹1,495 on the NSE. Centum Electronics was also trading 1.73% higher at ₹3,420.70.

Other EMS players were also trading higher. For instance, Dixon Technologies (India) Ltd shares were up 1.27% at ₹14,203, while Kaynes Technology India shares were up around 0.9% at ₹3,682.70 on the NSE.