India scraps import duty on key smartphone and electronics components
New customs relief on electronics parts aims to cut costs, spur investments
India has scrapped import duties on several components used in smartphones and electronic devices, a move expected to reduce manufacturing costs and boost domestic electronics production, Reuters reported.
The government has removed existing 7.5% and 5% import duties on select components used in electronics manufacturing.
The exemption covers:
Parts used for wireless charging modules in mobile phones
Components for display assemblies used in automotive, medical and industrial applications
Lithium-ion cells
Machinery used for lithium-ion battery manufacturing
The duty exemption will remain valid until March 31, 2029.
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Apple, Samsung and Xiaomi may benefit
The move is expected to support global electronics manufacturers, including Apple, Samsung and Xiaomi, which have expanded their manufacturing operations in India.
The reduction in import costs could help companies improve production efficiency and strengthen India’s position as a global electronics manufacturing hub.
Experts say move will boost local manufacturing
“This should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing,” Manoj Mishra, Partner at Grant Thornton Bharat, told Reuters and PTI.
Mishra said the exemption for lithium-ion cell manufacturing could encourage investment in domestic battery production for:
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.
Rajat Mohan, Managing Partner at AMRG Global, told PTI that the move consolidates separate customs exemptions into a single framework.
The change would:
Simplify customs procedures
Remove end-use-based distinctions
Reduce compliance challenges for manufacturers
Encourage investment in integrated battery production facilities
India targets $500b electronics manufacturing sector
The duty changes are part of India’s broader push to expand its electronics manufacturing ecosystem through initiatives such as the Production Linked Incentive (PLI) scheme.
India aims to increase electronics manufacturing to $500 billion by fiscal year 2030.
Government data cited by Reuters and PTI shows that smartphone production in India has grown significantly over the past decade.
Key figures:
Smartphone production increased 28 times in 10 years
Output reached ₹5.45 trillion ($57 billion) in the 2024-25 financial year
The government expects the latest duty exemptions to further support local production, attract investment and increase domestic value addition in the electronics sector.
