Shares of India’s leading electronics manufacturing services (EMS) firms surged in Thursday trading after the government announced a waiver of basic customs duty on critical electronic components.
The exemption, which covers inputs for display assemblies and lithium-ion batteries, is set to remain in place until 2029, providing long-term cost certainty for domestic producers.
Kaynes Technology led the sector’s advance, with shares climbing as much as 7.5% during the session.
Syrm SGS and other peers also posted sharp gains as investors priced in the immediate margin benefit from reduced import tariffs.
The move directly addresses a key structural cost headwind for Indian EMS players, who have historically relied on expensive imported components for assembly operations.
This policy shift builds on momentum from earlier this week, when the Expenditure Finance Committee cleared the budget proposal for the second phase of India’s semiconductor mission.