India-US trade deal: Stocks in the electronic manufacturing space, such as Syrma SGS Technology, Dixon Technologies, and others, have come under renewed buying interest in Tuesday’s session, February 3, following a Union Budget-day rally, as the reduction of US tariffs on Indian imports further boosted earnings visibility and re-rating prospects for the sector.
Avalon Technologies shares were locked at the 20% upper circuit limit at ₹1,022 apiece, which is also the highest level in over two months. Syrma SGS Technology rallied 10.6% to hit a two-month high of ₹802.55 apiece, while Dixon Technologies and Kaynes Technology surged 7% and 8.3%, respectively.
Others, including Amber Enterprises and PG Electroplast, also climbed 9.3% and 8.4%, respectively, at their day’s high.
US President Donald Trump on Monday lowered tariffs on Indian imports to 18% from 25%, and he is also reportedly removing an additional punitive 25% duty that was applied in response to India’s purchases of crude oil from Russia.
Higher tariffs on Indian goods had remained a key overhang for markets in recent months, which made the Indian stock market the worst performer among Asian peers in 2025.
EMS seen as key beneficiary as tariff relief, supply-chain shifts boost export visibility: Experts
While lower tariffs are expected to boost exports to the US and potentially help India to gain a larger US market compared to other Asian economies, analysts believe the EMS space also stands to benefit the most from the tariff reduction.
Analysts at domestic brokerage firm Axis Direct, said that electronics manufacturing services stand out as a key beneficiary of the US–India trade deal.
With tariff support and supply-chain realignment, the brokerage noted that India could gain share in smartphone assembly, semiconductors (OSAT), and electronics components manufacturing. This reinforces the PLI-led manufacturing cycle and supports both listed EMS players and ancillary suppliers.
Tushar Badjate, Director of Badjate Stock & Shares Pvt Ltd, also said that the lower tariffs could benefit sectors such as IT services, pharmaceuticals, electronics manufacturing, and defence-linked manufacturing from improved access, supply chain diversification, and sustained US demand.
Union Budget 2027 launches Semiconductor Mission 2.0
Union Finance Minister Nirmala Sitharaman, in her budget speech in the Lok Sabha, announced the launch of India Semiconductor Mission 2.0. The move aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design.
The Centre will also expand the Electronics Component Manufacturing Scheme (ECMS) to a net outlay of ₹40,000 crore, less than a year after the programme was rolled out, underscoring the government’s push to deepen electronics manufacturing and reduce import dependence.
In late January, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said that India’s semiconductor design programme has reached a significant level of achievement, enabling the nation to take off in the global chip industry.
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