Buying smartphones, laptops, smart TVs and wearable devices could soon become more affordable in India. In a major boost to the electronics manufacturing sector, the Central Government has removed the Basic Customs Duty (BCD) on several key raw materials used in the production of electronic devices.
According to a notification issued by the Ministry of Finance, the customs duty exemption will remain in force until March 31, 2029. The move is aimed at increasing domestic manufacturing, reducing production costs and ultimately benefiting consumers through lower prices.
Under the revised policy, raw materials used in the manufacturing of display assemblies, lithium-ion cells and inductor coil modules will no longer attract Basic Customs Duty. These components are widely used in smartphones, laptops, smart TVs, smartwatches, fitness bands and other electronic devices.
Move Expected to Reduce Dependence on China and Vietnam
Industry experts say display assemblies and lithium-ion cells account for a significant share of the manufacturing cost of smartphones and laptops. At present, India depends heavily on countries such as China and Vietnam for the supply of these critical components.
The removal of import duty is expected to encourage local manufacturing, strengthen India’s electronics supply chain and reduce reliance on imports. The decision also supports the government’s Production Linked Incentive (PLI) scheme, which aims to make India a global electronics manufacturing hub.
Tax Relief Extended to Battery Manufacturing Machinery
In addition to raw materials, the government has also exempted customs duty on several advanced machines used in electronics and battery manufacturing.
The duty waiver covers equipment such as powder dryers, automatic feeding and blending systems, cathode and anode extrusion coating machines, electrode cutting machines, testing equipment and automatic packing systems. These machines are essential for manufacturing high-quality batteries and electronic components.
Consumers Likely to Benefit
With lower import costs for raw materials and manufacturing equipment, companies are expected to see a significant reduction in production expenses. Industry analysts believe manufacturers may eventually pass on these savings to consumers through lower prices.
The move is also expected to strengthen the ‘Make in India’ initiative by making domestically manufactured electronic gadgets more competitive in both the Indian and global markets. If manufacturers transfer the cost benefits to buyers, consumers could soon see more affordable prices for smartphones, laptops, smart TVs and other electronic devices.