Overview
- The central government removed customs duties on several high-value parts used in phones and electronics, including components for wireless charging, display modules and lithium-ion cells.
- The change, announced Thursday, cancels earlier 5% and 7.5% import levies and will stay in effect until March 31, 2029.
- Officials and reporting say the move is intended to cut production costs for brands that assemble in India and to strengthen the business case for makers such as Apple and Xiaomi to expand local manufacturing.
- Industry analysts caution that shoppers may not see immediate price cuts because companies decide whether to pass savings on to consumers and the consumer impact will depend on which specific parts and values were exempted.
- The step builds on a decade of rapid growth in India's phone making — production rose roughly 28-fold to Rs 5.45 lakh crore in FY2024-25 — and could prompt more component suppliers to set up in India and deepen the local supply chain.