New customs relief on electronics components aims to lower costs and attract investments.
India has removed import duties on several components used in smartphones and electronic devices, a move aimed at lowering manufacturing costs and encouraging growth in the domestic electronics sector, according to Reuters.
The government has eliminated the existing 7.5% and 5% import tariffs on select components used in electronics production.
The exemption applies to several key components, including:
- Parts used in wireless charging modules for mobile phones
- Components used in display assemblies for automotive, medical, and industrial applications
- Lithium-ion battery cells
- Machinery used in the production of lithium-ion batteries
The duty exemption will remain in effect until March 31, 2029.
Apple, Samsung, and Xiaomi are among the companies likely to benefit from the move.
The policy change is expected to support global electronics manufacturers that have expanded their production operations in India, potentially helping them reduce costs and strengthen their local supply chains.
The reduction in import costs is expected to help companies improve production efficiency and strengthen India’s position as a global electronics manufacturing hub.
Experts say move will boost local manufacturing
The policy change is expected to improve cost competitiveness, increase domestic value addition, and support the localisation of high-value smartphone and electronics manufacturing, according to Manoj Mishra, Partner at Grant Thornton Bharat, who spoke to Reuters and PTI.
Mishra said the exemption for lithium-ion cell manufacturing could encourage greater investment in domestic battery production for sectors such as:
- Consumer electronics
- Smartphones
- Electric mobility
New customs framework for battery manufacturing
The government has also introduced a technology-neutral exemption for machinery used in lithium-ion battery manufacturing, aimed at supporting the expansion of domestic battery production.
Rajat Mohan, Managing Partner at AMRG Global, told PTI that the move consolidates multiple customs exemptions into a unified framework.
The changes are expected to:
- Simplify customs procedures
- Remove distinctions based on end-use requirements
- Reduce compliance burdens for manufacturers
- Encourage investment in integrated battery production facilities
India targets $500 billion electronics manufacturing sector
The duty reforms are part of India’s broader effort to expand its electronics manufacturing ecosystem through initiatives such as the Production Linked Incentive (PLI) scheme.
India has set a target of increasing electronics manufacturing to $500 billion by fiscal year 2030.
Government data cited by Reuters and PTI shows that smartphone manufacturing in India has expanded significantly over the past decade.
Key figures:
- Smartphone production has increased 28 times over the last 10 years
- Output reached ₹5.45 trillion ($57 billion) in the 2024–25 financial year
The government expects the latest duty exemptions to further strengthen domestic production, attract investment, and increase local value addition across the electronics sector.
