Electronic manufacturing stocks including Kaynes Technology, PG Electroplast, CG Power and Dixon Technologies surged up to 5% following Union Budget 2026 announcements. Finance Minister Nirmala Sitharaman launched India Semiconductor Mission 2.0 and increased electronics manufacturing scheme outlay to ₹40,000 crore from ₹24,900 crore, marking her ninth consecutive Union Budget presentation in the Lok Sabha.

Stock Performance and Market Response

Electronic manufacturing companies experienced a strong rally following key policy announcements that provided significant support to the sector. According to CNBC TV18 the market responded positively to the government's commitment to supporting domestic production capabilities and strengthening India's position in the global electronics supply chain.

India Semiconductor Mission 2.0 Launch

The government launched the India Semiconductor Mission 2.0, a strategic initiative designed to strengthen semiconductor supply chains and promote Indian stack IP based semiconductors. This mission represents a significant step toward building domestic semiconductor capabilities and reducing import dependence in critical technology components.

Enhanced Electronics Manufacturing Funding

Finance Minister Sitharaman announced a substantial increase in funding for the electronic components manufacturing scheme, demonstrating unprecedented government support for the sector.

Strategic Technology Infrastructure Development

The enhanced allocation represents a major boost to domestic electronics manufacturing capabilities and is expected to accelerate growth in the sector. This initiative provides the necessary financial foundation for large-scale electronics production facilities and components manufacturing infrastructure, positioning India as a key player in the global electronics ecosystem.

The policy measures aim to strengthen semiconductor supply chains, promote technological self-reliance, and reduce dependence on electronics component imports through enhanced domestic production infrastructure.

Finance Minister Nirmala Sitharaman announced the Biopharma Shakti program with an allocation of ₹10,000 crore during Budget 2026-27 presentation. The announcement triggered immediate positive market reaction among pharmaceutical stocks, with Biocon gaining 3% and other pharma stocks rising 1-2%.

Budget Allocation Framework

FM Sitharaman made the announcement during her ninth consecutive Budget speech on February 1 on the floor of the Lok Sabha. The Biopharma Shakti program represents a strategic government initiative to strengthen India's biopharmaceutical capabilities over the next 5 years.

Market Response

The announcement generated immediate positive sentiment in the pharmaceutical sector. Market data shows Biocon shares gained 3% following the Budget announcement, while other pharmaceutical stocks recorded gains of 1-2%, reflecting investor confidence in the government's commitment to the biopharma sector.

Government's Strategic Vision

FM Sitharaman emphasized that biologics are key to longevity and outlined the government's plan to develop India as a biopharma manufacturing hub. The initiative will focus on establishing a biopharma-focused network to enhance the sector's infrastructure and capabilities.

The Biopharma Shakti program forms part of the broader Union Budget 2026-27 framework, demonstrating the government's commitment to positioning India as a global leader in biopharmaceutical manufacturing and innovation. This multi-year funding approach provides industry stakeholders with long-term visibility for planning investments and expansion activities.