EMS Stocks Rally After Customs Duty Waiver Announcement
Shares of electronics manufacturing services (EMS) companies, including Dixon Technologies and Kaynes Technology, surged by up to 8% on July 9, 2026, following the government's decision to waive basic customs duty on key components used in electronics manufacturing. The move is aimed at boosting domestic production and reducing costs for manufacturers.
Dixon Technologies shares rose 7.5% to Rs 8,450, while Kaynes Technology gained 8.2% to Rs 3,210 on the BSE. Other EMS stocks like Syrma SGS Technology and Amber Enterprises also saw gains of 5-6%.
Details of the Duty Waiver
The Ministry of Finance issued a notification on July 8, 2026, exempting basic customs duty on components such as printed circuit board assemblies (PCBA), camera modules, connectors, and display assemblies. The waiver is effective from July 9, 2026, and will remain in place until March 31, 2027.
According to a government statement, the move is expected to reduce the cost of manufacturing electronic goods in India by 2-3%, making them more competitive globally. The waiver covers components used in mobile phones, laptops, and other consumer electronics.
Impact on the Electronics Manufacturing Sector
Industry experts hailed the decision as a significant boost for the 'Make in India' initiative. "This duty waiver will lower input costs for EMS players, improve margins, and accelerate the shift towards domestic manufacturing," said Rajesh Gupta, an analyst at Motilal Oswal Financial Services.
According to data from the India Electronics and Semiconductor Association (IESA), the EMS market in India is projected to grow to $152 billion by 2030, up from $76 billion in 2025. The duty waiver is expected to provide an additional impetus to this growth.
Company Reactions and Outlook
Dixon Technologies stated that the waiver would directly benefit its mobile phone and consumer electronics segments. "This is a welcome step that will enhance our competitiveness and support our expansion plans," said a company spokesperson.
Kaynes Technology also expressed optimism, noting that reduced component costs would allow it to invest more in R&D and capacity expansion. The company recently announced plans to set up a new manufacturing facility in Telangana with an investment of Rs 500 crore.
Broader Market Sentiment
The broader market also reacted positively, with the BSE Sensex rising 0.8% to 62,450 points, led by gains in technology and manufacturing stocks. Analysts believe that the duty waiver could trigger a re-rating of EMS stocks, which have been under pressure due to global supply chain disruptions.
"The government's focus on electronics manufacturing is clear, and this duty waiver is a step in the right direction. We expect sustained interest in EMS stocks going forward," added Gupta.
