Electronics manufacturing stocks rallied on Wednesday after the Union Cabinet approved the revamped Mobile Phone Manufacturing Scheme (MPMS), also known as Mobile PLI 2.0, aimed at boosting domestic electronics production and strengthening India’s manufacturing ecosystem.
Dixon Technologies led the gains, rising over 7 per cent during intraday trade to touch ₹14,675 before settling slightly lower at ₹14,631. Kaynes Technology also climbed nearly 3.5 per cent to ₹3,452.90 before easing to around ₹3,426.50, reflecting strong investor confidence in the sector.
New PLI scheme boosts investor sentiment
The revamped Mobile PLI 2.0 scheme comes with a budgetary outlay of ₹62,500 crore and will run for five years from FY27 to FY31. It replaces the original Mobile PLI programme, which concluded in March 2026.
Unlike the previous scheme, the new framework extends incentives beyond mobile phone assembly. It encourages domestic component manufacturing, product design and research and development, with the aim of creating a stronger and more self-reliant electronics manufacturing ecosystem in India.
Dixon and Kaynes seen as key beneficiaries
Market experts believe Dixon Technologies is among the biggest beneficiaries of the new policy. According to Harshal Dasani, Business Head at INVAsset PMS, investor optimism has also been driven by the government’s approval of the Dixon-Vivo joint venture, which is expected to significantly strengthen the company’s smartphone electronics manufacturing services (EMS) business.
Brokerage firm Jefferies also highlighted that Kaynes Technology is well placed to benefit from the government’s Electronics Components Manufacturing Scheme (ECMS). The company has already received approval for camera module manufacturing, alongside Syrma SGS, Uno Minda, ASUS and Dixon Technologies.
Push for self-reliant electronics manufacturing
The government’s latest initiative is expected to accelerate investments in high-value electronics manufacturing, reduce import dependence and position India as a global hub for mobile phone and electronic component production.
The announcement has reinforced positive sentiment in the electronics manufacturing sector, with investors expecting sustained growth opportunities under the new incentive framework.