News in Short

• The Indian government has removed import duties on several smartphone and electronics components.
• The exemption covers wireless charging parts, lithium-ion cells, and select display components.
• The duty waiver will remain in effect until March 31, 2029.
• The move aims to improve local manufacturing and boost value addition.
• Apple, Xiaomi, and other electronics manufacturers are expected to benefit.

The Indian government has removed import duties on several components used in smartphones and electronic devices, offering a major boost to the country’s manufacturing ambitions. The exemption, which removes existing 5 percent and 7.5 percent import duties, will remain in force until March 31, 2029 and is expected to improve cost competitiveness for manufacturers operating in India.

The decision is likely to benefit global smartphone makers such as Apple and Xiaomi, along with companies manufacturing electronic products under India’s expanding production ecosystem.

Which products are covered?

The latest exemption applies to several critical components used across the electronics industry.

These include parts used to manufacture wireless charging modules for smartphones, displays used in medical devices and automobiles, and lithium-ion cells, which power smartphones, laptops, wearables, and electric mobility products.

By reducing import costs on these components, manufacturers could lower production expenses while increasing domestic value addition.

Why has the government taken this step?

The move aligns with India’s long-term goal of becoming a global electronics manufacturing hub.

According to Manoj Mishra, Partner at Grant Thornton Bharat, removing these duties should improve cost competitiveness, encourage localisation, and increase domestic manufacturing of high-value smartphones and electronic products.

He also noted that exempting lithium-ion cell manufacturing inputs could attract fresh investments into India’s battery ecosystem, supporting both consumer electronics and electric mobility.

Big boost for India’s electronics ambitions

India has rapidly emerged as one of the world’s fastest-growing electronics manufacturing centres.

The government aims to expand the country’s electronics manufacturing industry to $500 billion by FY2030.

Official data shows that smartphone production in India has increased 28-fold over the past decade, reaching Rs. 5.45 trillion (around $57 billion) during the financial year 2024-25.

The latest policy is expected to further strengthen initiatives such as Make in India and the Production Linked Incentive (PLI) schemes, which have attracted investments from major global brands.

Will consumers benefit?

The immediate impact for consumers may be limited, as pricing depends on several factors, including component costs, exchange rates, taxes, and company pricing strategies.

However, lower manufacturing costs could eventually help brands improve margins, invest more in local production, or introduce competitively priced devices in the Indian market.

More importantly, the policy reinforces India’s position as a key manufacturing destination for smartphones, batteries, and other electronic products.

Looking ahead

With import duty exemptions now extending until March 2029, manufacturers gain greater policy certainty for long-term investments. As more global companies shift production to India, the latest move could further accelerate localisation and strengthen the country’s role in the global electronics supply chain.