Government Waives Customs Duty on Electronics Components

On 9 July 2026, the Indian government waived basic customs duty on goods used in the manufacture of display assemblies, lithium-ion cells, and inductor coil modules. The exemption applies to inputs used in electronics manufacturing and remains valid until 31 March 2029.

Basic Customs Duty and Its Scope

Basic customs duty is a tariff levied under the Customs Act, 1962, on imported goods entering India. In this case, the waiver covers goods used in display module assemblies for smartphones, laptops, wearables, smart TVs, automotive systems, medical devices, and industrial applications.

Electronics Manufacturing Inputs Covered

The exemption also includes components used in wireless charging modules for smartphones, including NFC coils and NdFeB magnets. The waiver extends to specified machinery, equipment, and components used in electronics and lithium-ion battery manufacturing until 31 March 2029.

Policy Link with Domestic Production

The Finance Ministry issued three separate notifications to implement the basic customs duty waiver. The measure is aligned with the Production Linked Incentive scheme for electronics manufacturing, which supports domestic production of electronic devices and components in India.

Important Facts for Exams

• Basic customs duty is one of the principal duties collected on imported goods at Indian ports.
• Display assemblies are used in consumer electronics, automotive systems, and medical equipment.
• Lithium-ion cells are widely used in smartphones, laptops, electric vehicles, and energy storage systems.
• NdFeB magnets are neodymium-iron-boron magnets used in compact electronic and electrical devices.

Industry Context

Electronics manufacturing services firms and lithium cell makers are part of India’s electronics supply chain. The policy covers inputs used in the manufacture of smartphones, laptops, wearables, smart TVs, and battery-related products.