Customs Duty on Electronics: Big boost to Make in India! Custom duty on smartphone and EV parts completely abolished, know what will be cheaper

The Central Government has taken a very big and historic decision to make domestic manufacturing in the country competitive at the global level. The government has completely waived (0%) the custom duty (import duty) on many major electronic components used in manufacturing display modules and wireless charging systems. The direct objective of this revolutionary step of the government is to make India a global hub of electronics production and reduce the country’s dependence on foreign imports.

Now no tax will be levied on parts of these sectors

Under this new tax exemption policy, mainly the supply chains of three large and important industries have been included:

• Automotive and Electric Vehicles (EV): Now there will be no import duty on advanced displays and electronic parts used in vehicles.

• Medical Equipment: Parts of display assemblies of modern medical machines have been made tax free.

• Smartphone Industry: Major relief has been given to the components of wireless charging modules made for mobile phones.

These raw materials including display cells and NFC coils got relief

The scope of this huge tax exemption given by the government will be applicable to many important inputs and raw materials used in electronics manufacturing. These mainly include:

• Display Cells and Backlight Units

• Flexible Printed Circuit Assembly (FPCA)

• NFC coils and Neodymium Iron Boron (NdFeB) magnets (which are essential for automobiles and smartphones).

Exemption will remain applicable till 31 March 2029, golden opportunity for companies to invest

This relief is not a short-term scheme, but the government has 31 March 2029 Has been implemented till. Exemption in customs duty for such a long period will give domestic and foreign big companies enough time to plan large-scale investment (FDI) in India and set up production factories locally. Although India is currently the world leader in smartphone assembly, we are still dependent on other countries for components; This decision will work to bridge that gap.

Lithium-ion battery and solar industry also got a boost

The government has also paid special attention to green energy and clean mobility through this policy:

• Battery Manufacturing: By expanding the scope of the list of machines used in making lithium-ion batteries, import duty has now been removed on 85 types of advanced machines. It also includes supporting equipment such as solvent recovery, heat recovery, dust collection and effluent treatment.

• Solar and EPC Companies: Solar equipment manufacturing and engineering, procurement and construction (EPC) companies have also been given major concessions to reduce costs.

How and when will the general public get the benefit of this decision?

Even though this decision of the government will first have a direct impact on the manufacturing cost of the companies, in the future its direct benefits will reach the pockets of common consumers. When it will be cheaper for companies to import parts, then in the coming time The prices of electric vehicles (EV), smartphones, medical checkups and other electronics gadgets can be significantly reduced. Apart from this, opening of new factories in the country will also create new employment opportunities for lakhs of youth.