Centre Extends Customs Duty Relief for Electronics and Battery Manufacturing Till 2029

The Central Government has expanded customs duty concessions on a range of machinery and components used in electronics manufacturing, extending the exemptions until March 31, 2029, in a move aimed at strengthening domestic production and supporting India's growing electronics manufacturing sector. 

The Ministry of Finance has issued three separate notifications providing a waiver of basic customs duty on goods used in the manufacture of lithium ion batteries, display assemblies and wireless charging modules. The revised exemptions came into effect immediately and will remain valid until March 31, 2029. 

The notifications also broaden the list of eligible machinery used in lithium ion battery manufacturing, allowing manufacturers to import a wider range of equipment without paying basic customs duty. The measure is expected to lower capital costs for battery manufacturers while encouraging investments in domestic production facilities. 

The duty relief extends to components used in the manufacture of display modules and smartphone wireless charging systems, sectors that have witnessed rapid growth under India's electronics manufacturing initiatives. By reducing the cost of imported production inputs, the government aims to improve the competitiveness of locally manufactured electronic products and reduce dependence on imported finished goods.

Industry participants believe the extension will provide long term policy certainty, encouraging manufacturers to expand production capacity and invest in advanced manufacturing technologies. The move also aligns with the government's broader objective of making India a global electronics manufacturing hub under the Make in India initiative.