Syrma SGS to Kaynes Tech: EMS stocks jump up to 7.5% as Centre waives customs duty on key electronic components

Stocks in the Electronics Manufacturing Services (EMS) sector rallied sharply in Thursday's session after the government waived the basic customs duty (BCD) on goods used in the manufacture of display assemblies, lithium-ion cells, and inductor coil modules until March 31, 2029.

The move is aimed at boosting domestic manufacturing of electronic products such as smartphones, laptops, wearables, and smart TVs.

Reacting to the announcement, shares of Kaynes Technology surged 7.5% to ₹1,446 apiece. PG Electroplast, Dixon Technologies, Syrma SGS Technology, and Amber Enterprises also rallied by up to 6%.

Duty waiver to strengthen domestic electronics manufacturing

The Finance Ministry issued three separate notifications reducing the basic customs duty (BCD) on key electronics manufacturing components to zero, with immediate effect. The exemptions will remain in force until March 31, 2029, and are aimed at supporting the domestic production of smartphones, laptops, wearables, and smart TVs.

The government has also replaced the existing list of machinery eligible for concessional customs duty for lithium-ion cell manufacturing with an expanded list covering 85 capital goods.

The duty exemption is in line with the government's efforts to promote domestic electronics manufacturing under the Production Linked Incentive (PLI) scheme. The move is expected to reduce import dependence, lower manufacturing costs, and strengthen India's electronics manufacturing ecosystem.

Commenting on the announcement, Anurag Choudhary, CMD and CEO of Himadri Speciality Chemical Ltd., said, "The government's decision to extend customs duty relief for lithium-ion battery manufacturing until 2029 is a timely and important policy intervention. Long-term policy certainty is essential for building a globally competitive battery ecosystem, as it encourages sustained investments in advanced materials, cell manufacturing, and the broader supply chain."

"While this measure will improve project economics and accelerate capacity creation, continued focus on technology development, domestic value addition, and innovation will be equally critical for India to emerge as a global hub for next-generation energy storage and electric mobility under the vision of Atmanirbhar Bharat," he added.

The government has been stepping up efforts to expand domestic electronics manufacturing. As part of this push, it recently expanded the Electronics Component Manufacturing Scheme (ECMS) with a total outlay of ₹40,000 crore less than a year after the programme was launched, underscoring its focus on deepening local manufacturing capabilities and reducing import dependence.

Meanwhile, in the recent Union Budget, the government launched India Semiconductor Mission 2.0 to build a robust semiconductor and display ecosystem, with the aim of positioning India as a global hub for electronics manufacturing and design.

(With inputs from PTI)

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