India Waives Customs Duties on Electronics and Battery Equipment

The Government of India has waived basic customs duties on critical electronic components and manufacturing machinery effective immediately, extending these concessions until March 31, 2029. The measure aims to reduce import costs for specialized equipment and transition India from a product assembly base into a global electronics manufacturing hub with a target of $500 billion by fiscal year 2030.

Coordinated through the Ministry of Finance and the Central Board of Indirect Taxes and Customs, the policy introduces 'nil' duties on six components for wireless charging inductor coil modules in smartphones. It also exempts five components for display assemblies used in automotive, medical, and industrial applications, though it specifically excludes those for mobile phones, smartwatches, and televisions. To support battery gigafactories, the government expanded the eligible machinery list for lithium-ion cell production to 85 categories, covering the entire process from material mixing to packaging.

S Krishnan, Secretary of the Ministry of Electronics and IT, described the move as an "important change" that will stimulate the electronic component industry. The initiative complements the Electronics Component Manufacturing Scheme, which has secured over Rs 1.15 lakh crore in investment. Market response was positive, with shares of electronics manufacturing services and battery sector companies rallying, including a 7.5% surge for Kaynes Technology.