Wireless charging parts, lithium-ion cells get duty-free status as India eyes bigger electronics pie

Components used in wireless charging modules for smartphones and lithium-ion cells are among the items now exempt from import duty in India, as the government works toward a $500 billion electronics manufacturing sector by fiscal year 2030. The exemption removes existing 7.5% and 5% basic customs duties and will remain in force until March 31, 2029, according to a Reuters report.

The duty-free status also extends to components used in display assemblies for automotive, medical and industrial applications, per notifications from the Finance Ministry and the Central Board of Indirect Taxes and Customs. Separately, the government has introduced a technology-neutral customs exemption covering machinery used at different stages of lithium-ion battery manufacturing.

Manoj Mishra of Grant Thornton Bharat said the changes “should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing,” while Rajat Mohan of AMRG Global noted that consolidating the battery machinery exemptions “significantly reduces compliance and interpretational challenges for manufacturers.”

Government data shows India’s smartphone production has grown 28-fold over the past decade, reaching Rs 5.45 trillion (about $57 billion) in FY 2024-25, with companies like Xiaomi, Samsung and Apple among those expected to benefit from lower input costs.