India has removed import duties on several key components used in smartphones and other electronic devices, a move expected to lower manufacturing costs and strengthen the country’s electronics ecosystem.
According to a Reuters report, the exemption removes import duties of 5% and 7.5% on select electronic components, including parts used in wireless charging modules, lithium-ion cells and display assemblies for medical devices and automobiles. The duty exemption will remain in effect until March 31, 2029.
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Industry experts believe the decision will benefit global manufacturers such as Apple and Xiaomi, both of which have significantly expanded their production operations in India over the past few years.
Which components will now become duty-free?
The government has exempted import duties on several high-value electronic components, including:
Components used in wireless charging modules for smartphones
Lithium-ion battery cells
Display modules used in medical devices and automobiles
The move is expected to reduce production costs while encouraging companies to manufacture more high-value products in India.
How will the duty cut benefit India’s electronics industry?
Experts say the decision is aimed at making India a more competitive manufacturing destination.
Speaking to Reuters, Manoj Mishra, Partner at Grant Thornton Bharat, said the measure would improve cost competitiveness, boost domestic value addition and accelerate localisation in smartphone and electronics manufacturing.
He added that exempting lithium-ion cells from import duties could also encourage fresh investments in domestic battery manufacturing for consumer electronics and electric vehicles.
The decision aligns with the government’s broader target of expanding India’s electronics manufacturing sector to $500 billion by FY2030.
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Government data cited by Reuters shows smartphone production in India has grown 28-fold over the last decade, reaching ₹5.45 trillion (around $57 billion) during the 2024-25 financial year.
The latest duty relief is expected to further strengthen India’s position as a global manufacturing hub while supporting the country’s long-term localisation strategy.
FAQs
Why has India removed import duty on smartphone components?
The government aims to reduce manufacturing costs, encourage localisation and strengthen India’s electronics manufacturing ecosystem.
Which companies are expected to benefit from the duty exemption?
Manufacturers including Apple and Xiaomi, along with other electronics companies producing devices in India, are expected to benefit from the lower import costs.
