Centre Extends Customs Duty Relief On Electronics Manufacturing Imports Till 2029

The centre has extended customs duty concessions on a range of machinery and components used in electronics manufacturing until 31 March 2029.

The revised rules, which came into effect immediately, cover 85 categories of equipment used in lithium-ion battery manufacturing, along with key parts required for display modules and smartphone wireless charging systems.

The decision is expected to make it cheaper for manufacturers to import specialised machinery and components that are not widely produced in India. The government hopes the move will encourage more investment in areas such as battery manufacturing, automotive electronics and advanced electronics production while supporting its broader push to expand domestic manufacturing.

What Is Covered Under The New Customs Duty Relief?

The biggest revision relates to lithium-ion battery manufacturing. The government has expanded the list of machinery eligible for concessional customs duty from the earlier notification to include 85 categories of equipment covering almost every stage of battery production.

The updated list includes machines used for material mixing, coating, pressing, slitting, winding, stacking, electrolyte filling, welding, testing, ageing, inspection and packaging. It also covers supporting systems such as solvent recovery, heat recovery, dust collection and effluent treatment.

To make implementation easier, the Central Board of Indirect Taxes and Customs (CBIC) has also specified the customs tariff classification for each machine.

Which Machinery And Components Have Been Included?

The government has extended customs duty exemptions on five imported components used to manufacture display assemblies for automotive, medical and industrial applications. These include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film (ACF).

However, the benefit will not apply to display assemblies meant for mobile phones, televisions, smartwatches, smart meters or interactive flat-panel displays.

In a separate notification, customs duty concessions have also been extended to six components used in wireless charging inductor coil modules for smartphones. These include nano-crystalline assemblies, E-shields, PET liners, PC shims, coils and neodymium magnets. The CBIC has issued technical definitions for these items to ensure uniform implementation.

Push For Electronics Manufacturing In India

Industry experts believe the extended duty relief could reduce the cost of setting up advanced manufacturing facilities by making specialised imports more affordable. Manufacturers importing the notified machinery and components will be eligible for concessional duty, subject to the conditions laid down in the relevant notifications.

The latest decision is part of the government's broader effort to deepen domestic value addition, strengthen supply chains and support growth in sectors such as electric mobility, battery manufacturing and high-end electronics production.

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