India removes import duty on select smartphone and electronics parts

The move removes import duties of up to 7.5 per cent on select electronic components and is expected to benefit manufacturers such as Apple and Xiaomi while supporting India's localisation push.

India has reportedly removed import duties on several components used in the manufacturing of smartphones and other electronic devices.

The move is expected to boost  the country’s electronics manufacturing ecosystem and improve cost competitiveness.

The government has scrapped the existing 7.5 per cent and 5 per cent import duties on select components, including key parts used in wireless charging modules for mobile phones, displays for medical devices and automobiles, and lithium-ion cells. The exemption will remain in effect until March 31, 2029.

The decision is likely to benefit global electronics manufacturers, including Apple and Xiaomi, which have expanded their production operations in India in recent years.

“This should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing,” Manoj Mishra, Partner at Grant Thornton Bharat, told Reuters.

Mishra added that exempting lithium-ion cells from import duties could encourage fresh investment in domestic battery manufacturing for consumer electronics as well as electric mobility.

The move aligns with India’s broader ambition to expand its electronics manufacturing industry to $500 billion by fiscal year 2030.

According to government data cited by Reuters, smartphone production in India has increased 28-fold over the past decade, reaching Rs 5.45 trillion (around $57 billion) in the 2024-25 fiscal year.

India has reportedly removed import duties on several components used in the manufacturing of smartphones and other electronic devices.

The move is expected to boost  the country’s electronics manufacturing ecosystem and improve cost competitiveness.

The government has scrapped the existing 7.5 per cent and 5 per cent import duties on select components, including key parts used in wireless charging modules for mobile phones, displays for medical devices and automobiles, and lithium-ion cells. The exemption will remain in effect until March 31, 2029.

The decision is likely to benefit global electronics manufacturers, including Apple and Xiaomi, which have expanded their production operations in India in recent years.

“This should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing,” Manoj Mishra, Partner at Grant Thornton Bharat, told Reuters.

Mishra added that exempting lithium-ion cells from import duties could encourage fresh investment in domestic battery manufacturing for consumer electronics as well as electric mobility.

The move aligns with India’s broader ambition to expand its electronics manufacturing industry to $500 billion by fiscal year 2030.

According to government data cited by Reuters, smartphone production in India has increased 28-fold over the past decade, reaching Rs 5.45 trillion (around $57 billion) in the 2024-25 fiscal year.