The government waives the basic customs duty (BCD) on selected components used to manufacture electronics, aiming to support domestic production of devices such as smartphones, laptops, wearables and smart TVs. According to reports, the finance ministry issues three separate notifications that implement the BCD exemption for goods used in the manufacture of display assemblies, lithium-ion cells and inductor coil modules. The measures are linked to efforts to expand India’s electronics manufacturing capacity, including the production-linked incentive (PLI) framework. Sources also note that the duty waiver is intended to reduce import dependence and strengthen the broader electronics ecosystem and value chain through increased local manufacturing of key parts.
The IT Secretary is cited as saying the waiver will help deepen the value chain and ecosystem. The exemption is set to remain in effect until March 31, 2029, as stated in the notifications, covering imports of the specified component inputs used for domestic device manufacturing.
