The Indian government has announced a waiver of basic customs duty (BCD) on key components used in the manufacture of electronic devices. The finance ministry issued three separate notifications on July 9, 2026, giving effect to the exemption on goods used in producing three critical components: printed circuit board assemblies (PCBAs) for mobile phones, chargers, and adapters.
Details of the waiver
The notifications cover items such as populated printed circuit boards, camera modules, connectors, and other parts essential for making mobile phones, chargers, and adapters. The move is aimed at reducing input costs for domestic manufacturers and encouraging local production of these components.
According to the finance ministry, the waiver applies to goods imported for use in the manufacture of these three categories. The notifications specify that the exemption is conditional on the importer following a particular procedure to ensure the goods are used only for manufacturing purposes.
Impact on the electronics sector
The decision is expected to benefit companies like Foxconn, Dixon Technologies, and other contract manufacturers who import these components. The Indian Cellular and Electronics Association (ICEA) welcomed the move, stating that it will help lower production costs and make Indian-made electronics more competitive globally.
“This waiver will provide a significant boost to the ‘Make in India’ initiative in electronics,” said Pankaj Mohindroo, chairman of ICEA. “By reducing the duty burden on key inputs, we can enhance value addition within the country and attract more investment.”
The government has been focusing on promoting electronics manufacturing under the Production Linked Incentive (PLI) scheme. The BCD waiver complements these efforts by addressing the high cost of imported components.
Background and previous duties
Earlier, basic customs duty on these components ranged from 10% to 20%, depending on the item. The waiver is effective immediately and will remain in force until further notice. Industry experts estimate that the move could reduce manufacturing costs by up to 5% for mobile phone makers and charger producers.
The government has also extended similar exemptions for components used in the manufacture of LED lights and medical devices in recent months, signaling a broader strategy to reduce import dependence.
