The decision eliminates existing import levies of 7.5% and 5% on selected components critical to electronics manufacturing. The exemptions will remain in effect until March 31, 2029, providing manufacturers with greater certainty for long-term investment and production planning.
Among the items covered by the duty waiver are essential parts used in the production of wireless charging modules for mobile phones, displays for medical equipment and automobiles, as well as lithium-ion cells, which are widely used in smartphones, consumer electronics and electric mobility solutions.
Industry experts believe the policy will reduce production costs while encouraging manufacturers to increase local sourcing and expand domestic operations.
"This should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing," said Manoj Mishra, a partner at business consultancy Grant Thornton Bharat.
Mishra added that the removal of duties on lithium-ion cell manufacturing inputs could also encourage fresh investments in India's domestic battery industry, supporting both the consumer electronics and electric vehicle sectors.
"Exemption for lithium-ion cell manufacturing may spur investment in domestic battery production for electronics and electric mobility," he said.
The latest policy aligns with India's broader ambition to become a global electronics manufacturing hub. The government has set a target of expanding the country's electronics manufacturing industry to US$500 billion by the 2030 fiscal year, driven by increased domestic production, exports and investment.
India's smartphone manufacturing industry has already witnessed remarkable growth over the past decade. According to official figures, smartphone production increased 28-fold to 5.45 trillion rupees (US$57 billion) during the 2024/25 fiscal year, reflecting the rapid expansion of local manufacturing capacity as global technology companies continue to diversify their supply chains.