India’s $500 billion electronics goal gets a boost with new import duty exemptions

India’s push to build a $500 billion electronics manufacturing sector by fiscal year 2030 has received a boost, with the government exempting several smartphone and battery manufacturing components from import duty. The exemption, which removes existing 7.5% and 5% basic customs duties, will remain in force until March 31, 2029, according to a Reuters report.

The changes cover components used in inductor coil modules for wireless charging in mobile phones, display assemblies for automotive, medical and industrial applications, and lithium-ion cells, per notifications from the Finance Ministry and the Central Board of Indirect Taxes and Customs. A separate technology-neutral exemption now covers machinery used across different stages of lithium-ion battery production.

Industry experts see the move as a cost boost for manufacturers. Manoj Mishra, Partner at Grant Thornton Bharat, said it “should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing,” while Rajat Mohan of AMRG Global said the consolidated battery machinery exemption “removes end-use-based distinctions” and simplifies compliance for manufacturers.

Companies such as Xiaomi, Samsung and Apple could see lower input costs as a result. Government data shows India’s smartphone production has grown 28-fold over the past decade, reaching Rs 5.45 trillion (around $57 billion) in FY 2024-25.