Global brokerage Macquarie said the scheme favours companies such as Dixon Technologies and Amber Enterprises, with Dixon emerging as the clearest near-term beneficiary of the policy.
Shares of electronics manufacturing companies rallied on Thursday after the Union Cabinet approved a new ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) aimed at driving deeper localisation and domestic design in India’s high-tech manufacturing sector over the next five years.Dixon Technologies shares jumped 7.5 per cent to ₹14,685, while Kaynes Technology gained 3.4 per cent to ₹3,452.90. Syrma SGS Technology and Amber Enterprises also traded higher.The Union Cabinet on Wednesday approved the MPMS, a ₹62,500 crore programme that will run from FY2026-27 to FY2030-31. The scheme succeeds the earlier production-linked incentive scheme for large-scale electronics manufacturing.Global brokerage Macquarie said the scheme favours companies such as Dixon Technologies and Amber Enterprises, with Dixon emerging as the clearest near-term beneficiary of the policy. The brokerage added that the framework improves the business case for companies looking to enter additional component manufacturing segments, including batteries. Macquarie also described Amber Enterprises as a “sleeper beneficiary” of the scheme, indicating potential upside from the localisation push and expansion in component manufacturing.According to Abhinav Tiwari, Research Analyst at Bonanza, the scheme targets cumulative production of around ₹39 lakh crore and is expected to generate nearly 60,000 direct jobs over its duration.Tiwari said domestic electronics production in India has expanded around six-fold over the past decade, with mobile phones now accounting for nearly half of the country’s electronics output. Electronics products have also emerged as one of India’s leading export categories.He added that India stands to benefit as global companies increasingly adopt a “China+1” sourcing strategy, although import dependence remains high, with China continuing to supply more than half of India’s electronic components.According to Tiwari, the new scheme directly targets this gap and is already influencing corporate strategy across the sector.He said Dixon Technologies, India’s largest mobile electronics manufacturing services player, is expanding into camera and display module manufacturing, while Kaynes Technology is entering chip packaging and printed circuit board manufacturing.Amber Enterprises and Syrma SGS are also expanding their printed circuit board capacities, he added.Tiwari said the impact of the scheme would be reflected in higher levels of domestic manufacturing, supported by recent funding initiatives for component production and customs duty exemptions.More Like ThisPublished on July 16, 2026
