Customs duty relief for electronic goods inputs to deepen domestic value addition: Industry
New Delhi, July 10
The Central government's decision to rationalise customs duties on capital equipment and critical inputs for electronic good production will deepen domestic value addition and attract investment, industry bodies said on Friday.
The government has rationalised duties for inputs in lithium‑ion battery cell manufacturing, display assemblies and wireless charging inductor coil modules.
Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) found the relief as "much more than a customs duty rationalisation" as it would lower capital costs, improve project viability and catalyse investments across the electronics value chain.
The move will accelerate India's transition from an assembly-led economy to a globally competitive electronics manufacturing hub, Chandak added.
The policy complements existing schemes such as the Electronics Component Manufacturing Scheme (ECMS) and the Semicon India Programme.
""This is much more than a customs duty rationalisation-it is a strategic investment in India's manufacturing future. The government is enabling higher domestic value addition, improving global competitiveness and making India a more attractive destination for electronics manufacturing investments," Chandak said.
Smartphones, EVs, telecom systems, medical devices and energy storage solutions built in India creates demand for semiconductors. A stronger component ecosystem today lays the foundation for a stronger semiconductor ecosystem tomorrow, he added.
Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association (ICEA), welcomed the broadening of duty dispensation for display assemblies to include automotive, medical and industrial displays, saying it would help build industry verticals in these segments similar to the growth seen in mobile and consumer electronics display assembly.
India's electronics market is projected to exceed $400 billion by 2030, while semiconductor demand is expected to cross $103 billion during the same period.
Simultaneously, India is building a multi-hundred GWh lithium-ion battery manufacturing ecosystem to support the rapid growth of electric mobility and energy storage.
Lower duties on manufacturing equipment will improve the competitiveness of these investments and strengthen supply chain resilience.
— IANS
Reader Comments
Great news for the electronics ecosystem! As someone working in a multinational in Bengaluru, I can see the shift. Lower duties on lithium-ion battery inputs will directly benefit the EV industry, which India is betting big on. But execution matters—will the benefits actually reach manufacturers or get stuck in red tape? Time will tell.
This is a smart move, but why only now? We've been hearing 'Make in India' for years, and customs duties have been a bottleneck. I appreciate the government focusing on display assemblies and battery cells—this will mean cheaper smartphones and EVs for consumers like us. Let's hope the benefits trickle down to the common man. 🙏
I'm cautiously optimistic. The policy looks good on paper, but India's electronics manufacturing ecosystem still faces challenges like unreliable power, high logistics costs, and skill gaps. Lower duties alone won't make us a global hub—we need infrastructure and ease of doing business improvements as well. Otherwise, it's just more imports in disguise.
As an engineer in a Bengaluru electronics firm, I welcome this wholeheartedly. The mention of display assemblies for automotive and medical sectors is key—we need to diversify beyond mobile phones. If we can build a robust component ecosystem, India can truly become the next manufacturing powerhouse. The $400 billion target seems ambitious but achievable with consistent policies. 🚀
Good to see the government taking concrete steps, but I worry about the 'trickle-down' approach. In my experience in the industry, big manufacturers often
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