Government Waives Customs Duty on Key Electronics Components 2026

On 9 July 2026, the government waived basic customs duty on inputs used in display assemblies, lithium-ion cells and inductor coils to boost electronics manufacturing. Detailed explainer.

On 9 July 2026, the Indian government waived basic customs duty (BCD) on goods used in the manufacture of display assemblies, lithium-ion cells, and inductor coil modules. The exemption is aimed at reducing input costs for domestic electronics manufacturers and boosting local production.

Basic Customs Duty (BCD) is the tax levied on goods imported into India. When BCD on key raw materials and components is removed, manufacturers can import these inputs more cheaply, which lowers the overall cost of producing electronics such as smartphones, laptops and batteries within the country.

The three targeted areas are strategically important: display assemblies are used in screens of phones and TVs; lithium-ion cells power batteries for phones, laptops and electric vehicles; and inductor coil modules are essential passive components in electronic circuits. Cheaper access to these inputs strengthens the electronics value chain.

This move supports the government's push for domestic electronics manufacturing under initiatives like Make in India and the Production Linked Incentive (PLI) scheme. It aims to reduce import dependence, attract investment, deepen local value addition, and make India a global electronics manufacturing hub.

Key Points (मुख्य बिंदु)

• Action: Waiver of Basic Customs Duty on electronics inputs
• Date: 9 July 2026
• Components covered: Display assemblies, lithium-ion cells, inductor coil modules
• Aim: Lower input costs, boost domestic electronics manufacturing
• Linked to: Make in India & PLI scheme

Practice MCQs (अभ्यास प्रश्न)

🔎 Read More Articles