Centre waives customs duty on key electronics manufacturing inputs

MUMBAI: India’s electronics ambitions just got a little less taxing. The Centre has waived basic customs duty on a range of components and machinery used in electronics manufacturing, signalling another push to deepen local production of critical technologies while reducing reliance on imported parts.

The Finance Ministry issued three separate notifications on 8 July, exempting select goods used in the manufacture of display assemblies, lithium-ion cells and inductor coil modules for wireless charging systems. The move is aimed at making domestic manufacturing more competitive and encouraging fresh investment across the electronics supply chain.

The exemptions for components used in display assemblies and inductor coil modules will remain in force until 31 March 2029, providing manufacturers with a longer planning horizon as India looks to expand its electronics ecosystem.

A key change is the simplification of the customs framework for lithium-ion cell manufacturing. Earlier exemptions differentiated between battery cells produced for specific applications, such as mobile phones and electric vehicles. Under the revised framework, the benefit has been consolidated into a single, technology-neutral provision that applies to machinery used for manufacturing lithium-ion cells across sectors.

The government expects the change to simplify customs procedures while supporting domestic investments in battery cell manufacturing, a critical segment as demand for electric mobility, energy storage and consumer electronics continues to grow.

For display assemblies, the exemption covers a range of key inputs, including display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film used in automotive, medical and industrial displays.

However, the concession does not extend to display assemblies used in mobile phones, smartwatches, television panels, smart meters or interactive flat-panel displays, indicating that the government is targeting specific industrial applications rather than the broader consumer electronics market.

The duty waiver also covers goods used in the manufacture of inductor coil modules, an essential component in wireless charging systems increasingly found in smartphones, wearables and other connected devices. The measure is expected to support local production as wireless charging technology becomes more widely adopted.

The latest notifications form part of the government’s broader strategy to strengthen India’s electronics manufacturing ecosystem by lowering input costs, streamlining regulations and encouraging greater localisation of high-value components.