The India Electronics and Semiconductor Association (IESA) has welcomed the Government of India’s decision to rationalise customs duties on capital equipment and critical inputs used for manufacturing lithium-ion battery cells, display assemblies and critical inputs used in the manufacture of wireless charging inductor coil modules, calling it a strategic policy measure that will accelerate India’s transition from an assembly-led economy to a globally competitive electronics manufacturing hub.
The customs duty relief is expected to reduce capital costs, improve project viability and catalyse investments across the electronics value chain. The policy complements the Government’s Electronics Component Manufacturing Scheme (ECMS) and Semicon India Programme, which together are aimed at deepening domestic manufacturing capabilities and increasing value addition.
India’s electronics market is projected to exceed US$400 billion by 2030, while semiconductor demand is expected to cross US$103 billion during the same period. Simultaneously, India is building a multi-hundred GWh lithium-ion battery manufacturing ecosystem to support the rapid growth of electric mobility and energy storage. Lower duties on manufacturing equipment will improve the competitiveness of these investments and strengthen supply chain resilience.
The announcement will benefit a wide range of sectors, including electric vehicles, smartphones, laptops, consumer electronics, telecom equipment, wearable devices, medical electronics, industrial electronics, drones, renewable energy and Battery Energy Storage Systems (BESS). Domestic manufacturing of display assemblies and wireless charging modules will also increase local value addition in high-volume products, particularly smartphones and other smart devices.
Although the measure does not directly target semiconductor fabrication, it will have a strong multiplier effect by expanding domestic electronics manufacturing, increasing demand for semiconductor devices and encouraging deeper integration of India’s electronics and semiconductor value chains.
Ashok Chandak, President, IESA, said:
“This is much more than a customs duty rationalisation—it is a strategic investment in India’s manufacturing future. By reducing the cost of producing three of the most critical building blocks of modern electronics—advanced batteries, display assemblies and wireless charging modules—the Government is enabling higher domestic value addition, improving global competitiveness and making India a more attractive destination for electronics manufacturing investments. Every smartphone, EV, telecom system, medical device and energy storage solution built in India creates demand for semiconductors. A stronger component ecosystem today lays the foundation for a stronger semiconductor ecosystem tomorrow. This is another important step towards making India not just a market for electronics, but a globally trusted hub for product creation and advanced manufacturing.”