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The Hindu
Govt waives basic customs duty on key inputs for electronics manufacturing
The Indian government has issued notifications waiving basic customs duties on components vital for electronics manufacturing, including lithium-ion cells and display assemblies. This initiative aligns with the Production Linked Incentive (PLI) scheme to encourage domestic production of smartphones and other electronic devices while reducing import dependency. The waivers are expected to remain in effect until March 31, 2029, simplifying customs regulations for manufacturers and stimulating fresh investments in the electronics ecosystem.
MonitorConfidence: HighMid term horizon
Published 9 Jul 2026, 16:35 UTC2 min read
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Summary
TL;DR
- Customs duty waiver on display assemblies, lithium-ion cells, and inductor coil modules.
- Supports the manufacturing of smartphones, laptops, and EVs under the PLI scheme.
- Waivers expected to reduce import dependence for electronics in India.
- Simplifies customs framework for manufacturers of lithium-ion cells.
- Beneficiaries include EV manufacturers, telecom providers, and battery gigafactories.
Interesting facts
- The exemption applies until March 31, 2029.
- The change consolidates separate customs exemptions into a technology-neutral framework.
- Broader applications include automotive, medical, and industrial displays beyond consumer electronics.