India Drops Import Duties on Key Electronics Parts to Boost Manufacturing
India has removed import duties on several components used in the manufacturing of smartphones and other electronic devices, according to a government notification. The exemption covers items such as parts for wireless charging modules, displays for medical devices and automobiles, and lithium-ion cells, which previously attracted duties of 5% and 7.5%.
The decision, effective immediately and continuing until March 31, 2029, is aimed at bolstering the country's electronics manufacturing ecosystem and enhancing cost competitiveness. Analysts say the move will benefit major global manufacturers like Apple and Xiaomi, which have expanded production operations in India in recent years.
The government's notification did not specify the total revenue forgone but is expected to reduce input costs for domestic producers and encourage further investment in the sector. India has been pushing to become a global hub for electronics manufacturing under its Production Linked Incentive (PLI) scheme.
Industry bodies have welcomed the step, stating it will help bridge the gap with competing manufacturing destinations in Southeast Asia. The exemption covers only select components, with the government retaining duties on finished goods to protect local assembly.
