Government cuts import duties on smartphone components to boost local manufacturing

India’s government has removed import duties on several components used in manufacturing smartphones and other electronic devices, a move that could lower input costs for companies such as Xiaomi, Samsung, Apple and other electronics makers operating in the country.

According to a Reuters report, the exemption removes existing 7.5% and 5% basic customs duties on identified components and machinery, and will remain in force until March 31, 2029. It covers inputs used in wireless charging modules for smartphones, 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.

The government has also expanded customs duty concessions for lithium-ion battery manufacturing machinery through a new technology-neutral exemption covering equipment used at different production stages. Officials say the changes support India’s broader push to expand its electronics manufacturing ecosystem through schemes like the Production Linked Incentive programme.

India aims to grow its electronics manufacturing sector to $500 billion by fiscal year 2030. Government figures show smartphone production in the country has increased 28-fold over the past decade, reaching Rs 5.45 trillion (roughly $57 billion) during FY 2024-25.