The government has removed import duties on several components used in the manufacturing of smartphones and other electronic devices. The move could cut input costs for companies such as Xiaomi, Samsung, Apple and other electronics makers in the country. The exemption, reported by Reuters, will be in force until March 31, 2029, and will remove the existing 7.5 per cent and 5 per cent basic customs duties on identified components and machinery.
The decision covers components used in wireless charging modules for smartphones, display assemblies for certain electronic applications, lithium-ion cells and machinery used in battery manufacturing, the Reuters report noted. The changes are part of the government’s efforts to support domestic electronics production and expand local manufacturing capacity.
Import duty exemption covers smartphone and electronics components
According to notifications issued by the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), the duty exemption applies to key inputs used in manufacturing inductor coil modules for wireless charging in mobile phones, components used in display assemblies for automotive, medical and industrial applications, and lithium-ion cells, an Economic Times report noted
The government has also expanded customs duty concessions for machinery used in lithium-ion battery manufacturing by introducing a technology-neutral exemption that covers equipment used at different stages of battery production.
The exemptions on inputs used in display assemblies and inductor coil modules will remain valid until the aforementioned date, March 31, 2029.
Government says the move supports domestic manufacturing
India has been expanding its electronics manufacturing ecosystem through initiatives such as the Production Linked Incentive (PLI) scheme to increase domestic production and localisation.
Commenting on the announcement, Manoj Mishra, Partner at Grant Thornton Bharat, told PTI, “This should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing.”
He also added that the “Exemption for lithium-ion cell manufacturing may spur investment in domestic battery production for electronics and electric mobility.”
Rajat Mohan, Managing Partner at AMRG Global, said the government has consolidated separate customs exemptions for machinery used in manufacturing lithium-ion cells into a single technology-neutral exemption.
According to Mohan, “This simplifies the customs framework, removes end-use-based distinctions, and significantly reduces compliance and interpretational challenges for manufacturers.”
He added that the amendment is expected to encourage new investments in domestic lithium-ion cell manufacturing by providing greater flexibility for manufacturers operating integrated production facilities.
India aims to expand its electronics manufacturing sector to USD 500 billion by the fiscal year 2030. Government data also shows that smartphone production in the country increased 28-fold over the past decade, reaching INR 5.45 trillion (around USD 57 billion) during the 2024-25 financial year.
