The Finance Ministry has issued a notification exempting customs duty on specified goods used in the manufacture of lithium-ion cells, inductor coil modules, and display assemblies. The announcement was made on July 9, 2026, following a notification dated July 8 by the Department of Revenue under the Ministry of Finance. The amendment expands the list of machinery and equipment eligible for duty-free import for lithium-ion cell production.
Expanded list of exempted machinery
The exemption covers a comprehensive range of specialized machines and systems used across the entire production process. These include powder dryers, automatic feeding and blending systems, slurry transfer systems, cathode and anode extrusion coating machines, compression equipment, high vacuum pumps, winding machines, electrode cutting and slitting machines, testing machines, auto-packing systems, separator coating machines, and stacking machines.
Additionally, the list includes welding machines, ultrasonic cleaning machines, electrolyte injection machines, solvent and heat recovery systems, cell baking and cooling machines, laser welding and notching equipment, cell formation and inspection systems, water sprinkler systems, racks, and wire filling and welding machines.
Support for inductor coil modules and display assemblies
The notification also grants customs duty exemption for goods used in the manufacture of inductor coil modules and display assemblies. This move is aimed at supporting domestic electronics manufacturing by reducing the cost of importing critical inputs and production equipment.
Public interest justification
The Finance Ministry stated that the amendments were made after the government was satisfied that such measures are necessary in the public interest. The duty exemptions are expected to lower production costs and strengthen India's manufacturing ecosystem for advanced batteries and electronic components.
Expected impact on domestic manufacturing
The move is likely to support the government's push to boost local value addition and expand domestic production capacities in key technology sectors. By reducing the financial burden on manufacturers, the exemptions encourage investment in domestic production facilities for lithium-ion cells, inductor coil modules, and display assemblies. This aligns with India's broader goals of self-reliance in electronics manufacturing and reducing dependence on imports.
Immediate implementation
The measures announced are implemented with immediate effect, allowing manufacturers to benefit from the duty exemptions right away. The notification amends the earlier Customs Notification, ensuring that the updated list of exempted goods is applicable from July 8, 2026.
