India Extends Customs Duty Relief for Electronics and Battery Manufacturing Until March 2029

The central government has expanded customs duty exemptions on a range of components and manufacturing equipment used in the electronics sector, reaffirming its strategy to strengthen domestic manufacturing and attract investment in high-value industries.

Announced through three customs notifications issued on July 8, 2026, the measures immediately extend customs duty relief for selected display assembly components, smartphone wireless charging module parts, and machinery used in lithium-ion battery manufacturing. Unless otherwise specified, the exemptions will remain in effect until March 31, 2029.

By reducing the cost of importing critical inputs and production equipment, the central government aims to enhance India’s competitiveness in electronics manufacturing while encouraging greater domestic value addition.

Customs duty exemption for electronic components

Under Notification No. 25/2026-Customs, the Ministry of Finance has exempted customs duty on specified imported components used to manufacture display assemblies for automotive, medical, and industrial applications.

The exemption applies to display cells, Flexible Printed Circuit Assemblies (FPCAs), backlight units, frames, and Anisotropic Conductive Film (ACF).

However, the customs exemption does not extend to display assemblies used in mobile phones, smartwatches, smart meters, LCD and LED televisions, and Interactive Flat Panel Displays (IFPDs).

These measures intend to reduce manufacturing costs for specialized display modules, where manufacturers continue to rely on imported components because of limited domestic availability.

Customs duty relief for smartphone wireless charging components

Through a subsequent notification No. 26/2026-Customs, the central government has also extended customs duty exemptions for imported electronic components used in the manufacture of wireless charging modules for smartphones.

The eligible components include:

1. Nano-crystalline (NC) assemblies
2. E-Shields
3. PET liners
4. PC shims (with Z-liner)
5. Main stranded coils
6. NFC coils
7. Neodymium-Iron-Boron (NdFeB) magnets

These components play different roles in wireless charging systems, including facilitating power transfer, reducing electromagnetic interference, maintaining coil alignment, dissipating heat, and supporting automated manufacturing processes.

To facilitate uniform implementation of the exemption, the Central Board of Indirect Taxes and Customs (CBIC) has also issued technical definitions for each of the eligible components.

Concessional customs duty expanded for lithium-ion battery manufacturing machinery

The government has also broadened customs duty concessions for machinery used in lithium-ion cell manufacturing through Notification No. 27/2026-Customs.

The revised notification expands the list of eligible machinery to 85 categories, covering equipment used throughout the battery manufacturing process, including the following:

• Material mixing and slurry preparation
• Electrode coating and compression
• Cell assembly and winding
• Electrolyte filling
• Welding and sealing
• Testing and quality inspection
• Cell formation and ageing
• Final packaging

The notification also extends concessional customs duty to supporting systems such as solvent recovery systems, heat recovery systems, dust collection equipment and effluent treatment systems

By lowering the cost of importing specialized production equipment, the measure is expected to reduce capital investment requirements for battery manufacturers. Furthermore, this move will support India’s expanding electric mobility and energy storage sectors.

Policy objective

The three notifications form part of India’s broader strategy to strengthen India’s electronics manufacturing ecosystem by lowering the cost of importing essential components and production equipment.

The measures are expected to:

1. Reduce manufacturing costs across key electronics sectors
2. Encourage investment in advanced electronics and battery manufacturing
3. Improve domestic value addition
4. Strengthen local supply chains
5. Reduce dependence on imported finished electronic products
6. Support growth in sectors such as consumer electronics, automotive electronics, medical devices, electric vehicles, and energy storage

The policy also aligns with India’s wider manufacturing agenda. This includes efforts to expand electronics and semiconductor production, attract high-technology investments, and position the country as a global manufacturing hub.

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