Govt Extends Duty Relief On Electronics And Battery Manufacturing Inputs Till 2029

New Delhi, Jul 9 (KNN) The Centre has extended customs duty exemptions on select components and machinery used in electronics and lithium-ion battery manufacturing, aiming to reduce import costs and strengthen domestic production capacity.

Through three notifications issued on July 8, the government provided relief on key inputs used in display assemblies and wireless charging modules, while also expanding concessional duty benefits for capital goods required in lithium-ion cell manufacturing. 

The exemptions have come into effect immediately and will remain valid until March 31, 2029.

Relief for Display Assembly Components

The government has exempted basic customs duty on five components used in manufacturing display assemblies for automotive, medical and industrial applications. These include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film (ACF). 

The exemption, however, does not apply to display assemblies used in consumer electronics such as mobile phones, smartwatches, televisions or interactive flat-panel displays.

Support for Wireless Charging Modules

In a separate move, the Centre has continued zero customs duty on key components used in manufacturing inductor coil modules for wireless charging in mobile phones. These include nano-crystalline assemblies, E-shields, PET liners, PC shims, stranded and NFC coils, and neodymium-iron-boron (NdFeB) magnets. 

Expanded Incentives for Lithium-Ion Cell Manufacturing

The government has also broadened the list of capital goods eligible for concessional customs duty in lithium-ion cell manufacturing. 

The revised list now includes 85 types of machinery covering nearly the entire production process, from material preparation and coating to assembly, testing and packaging. Equipment related to solvent recovery, heat management, dust control and effluent treatment has also been brought under the concessional regime.

Focus on Domestic Value Addition

The Finance Ministry said the measures were introduced in the public interest, with the aim of improving cost competitiveness and encouraging local manufacturing. 

Industry observers indicate that lower import costs for specialised equipment and components could help strengthen supply chains in sectors such as electric mobility, consumer electronics and advanced manufacturing, while supporting broader efforts to boost domestic value addition and attract investment.

(KNN Bureau)