In a significant development from the Union Budget 2026, electronic manufacturing stocks experienced a robust surge of 6% following the announcement of a substantial hike in outlay to Rs 40,000 crore. This move underscores the government's intensified focus on bolstering the electronics sector, which has shown remarkable growth over the past decade.
Budgetary Boost for Electronics Sector
Finance Minister Nirmala Sitharaman, presenting the budget on behalf of the Ministry of Finance, revealed the enhanced allocation aimed at accelerating domestic manufacturing. The increased funding is expected to drive innovation, create jobs, and reduce import dependency in key areas such as smartphones and consumer electronics.
Mobile Manufacturing: A Success Story
The budget announcement comes on the heels of impressive performance in the mobile manufacturing segment. Data indicates a nearly 30-fold increase in production value, soaring from Rs 18,000 crore in the financial year 2015 to an astounding Rs 5.45 lakh crore in FY25. This exponential growth highlights the sector's potential and the effectiveness of previous policy initiatives.
Market Reaction and Future Prospects
Investors responded positively to the news, with stocks of leading manufacturing companies in the electronics domain jumping by 6%. Analysts suggest that the Rs 40,000 crore outlay could further catalyze expansion, attract foreign investment, and enhance India's position in the global supply chain. The budget's emphasis on this sector aligns with broader economic goals of self-reliance and technological advancement.
As the government continues to prioritize electronics manufacturing, stakeholders are optimistic about sustained growth and increased competitiveness in the international market.
