India has removed import duties on several components used in phones and other electronics, a policy shift that could immediately reshape cost calculations for global manufacturers. The change eliminates levies that previously stood at 7.5% and 5%.
For companies building devices in India, the move opens a wider path to lower production costs and stronger local sourcing. It also signals that New Delhi wants to deepen the country’s role in the global electronics supply chain.
What is being exempted
The exemption covers parts used in wireless charging modules for phones, displays for medical devices and cars, and lithium-ion cells. It also applies to components linked to lithium-ion battery manufacturing, a segment that could attract fresh investment.
| Component | Use | Status |
|---|---|---|
| Wireless charging module components | Phones | Exempt from import duty |
| Displays | Medical devices and cars | Exempt from import duty |
| Lithium-ion cells | Batteries and electronics | Exempt from import duty |
Manoj Mishra, partner at consulting firm Grant Thornton Bharat, said the move will improve cost competitiveness, raise domestic value addition, and support the localization of smartphone and high-value electronics manufacturing. He added that lithium-ion cell manufacturing could also see stronger investment in domestic battery production for electronics and electric mobility.
A larger push for electronics manufacturing
India is working toward expanding electronics manufacturing to $500 billion by fiscal 2030. Smartphone production in the country has also surged 28-fold over the past decade, reaching 5.45 trillion rupees, or about $57 billion, in 2024/25.
Longer policy support is also in place, with incentives extended until March 31, 2029, giving companies more certainty as they expand or build manufacturing bases in India. Against that backdrop, the duty removal stands out as one of the clearest signals yet that the government wants India to strengthen its position in global electronics production, as reported by www.gadgets360.com.