Shares of India’s electronics manufacturing services companies rose on Sunday after the finance minister set aside 400 billion rupees ($4.3 billion) to boost the sector and position the country as a global hub for the sector.
Amber Enterprises Ltd. climbed as much as 6.6%, its biggest intraday gain since Aug. 18, while Dixon Technologies India Ltd. advanced 5.6%. Kaynes Technology India Ltd. gained as much as 5.2%.
The announcement underscores the government’s push to expand India’s electronics manufacturing base as global firms diversify supply chains away from China. The spending is expected to support capacity expansion, attract foreign investment and strengthen domestic value chains, benefiting contract manufacturers and component suppliers.
“This is not just a one-off policy announcement but a continuation of a multi-year strategy that markets tend to reward,” said Divam Sharma, co-founder and fund manager at Green Portfolio PMS.
The sector had lagged the broader market in 2025 after delivering triple-digit gains in earlier years.
The production-linked incentive plan for electronics components will see the outlay increase from 229 billion rupees earlier. Commitments under the facility have already exceeded the original target of 593 billion rupees to over 1 trillion rupees.
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