India removes import duty on some electronics, smartphone parts

• The duty exemption applies to key components including wireless charging modules, medical and automotive displays, and lithium-ion cells for batteries
• Industry experts say the policy will boost cost competitiveness and domestic value addition, potentially spurring investment in battery production for electronics and electric vehicles
• India's smartphone production has grown 28-fold over the past decade to 5.45 trillion rupees ($57 billion) in 2024/25

Summary

Key Development: India has eliminated import duties on select electronic components and smartphone parts, removing existing levies of 7.5% and 5%, effective until March 31, 2029.

Components Affected: The duty exemption covers critical manufacturing inputs including wireless charging modules for mobile phones, displays for medical devices and automobiles, and lithium-ion cells.

Companies Impacted: Major manufacturers like Apple and Xiaomi stand to benefit from reduced production costs in India.

Market Implications: According to Manoj Mishra, partner at Grant Thornton Bharat, this move should enhance cost competitiveness, increase domestic value addition, and accelerate localization of high-value smartphone and electronics manufacturing. The lithium-ion cell exemption is expected to stimulate investment in domestic battery production for both electronics and electric mobility sectors.

Industry Context:

• India aims to expand its electronics manufacturing sector to $500 billion by fiscal year 2030
• Smartphone production has grown dramatically, increasing 28-fold over the past decade to reach 5.45 trillion rupees ($57 billion) in fiscal 2024/25

Strategic Significance: This policy adjustment reinforces India's positioning as a competitive manufacturing hub for global electronics companies. By removing cost barriers on key components, the government is incentivizing deeper manufacturing integration and potentially attracting additional foreign investment in both consumer electronics and emerging electric vehicle battery production. The multi-year exemption period through 2029 provides manufacturers with policy certainty for long-term investment planning.