The Indian government has reduced import costs for a variety of components and capital goods used in electronics and battery manufacturing by issuing three customs notifications on July 8, 2026. The notifications provide basic customs duty (BCD) exemptions on specific inputs and machinery to boost domestic value addition and cost competitiveness.
Exemptions for Display Assembly Components
One notification exempts five components used in the production of display assemblies for automotive, medical, and industrial applications from BCD until March 31, 2029. These components include anisotropic conductive film (ACF), frames, backlight units, cells, and flexible printed circuit assemblies (FPCAs). However, the exemption does not cover display assemblies for smartphones, smartwatches, smart meters, TV panels, and interactive flat-panel displays.
Extended Zero-Customs Tax for Wireless Charging Components
Another notification extends the zero-customs tax period for six components used in the production of inductor coil modules for wireless charging in cellular mobile phones until March 31, 2029. The components include neodymium-iron-boron (NdFeB) magnets, E-shields, PET liners, PC shims, stranded and NFC coils, and nano-crystalline assemblies.
Concessional Duty on Machinery for Lithium-Ion Cell Production
A third notification expands the list of 85 capital goods that qualify for concessional customs duty on machinery used in the production of lithium-ion cells. The updated list includes coating machines, winding machines, welding systems, testing equipment, forming machines, drying systems, and other specialized manufacturing equipment required during the production of lithium-ion cells.
The move is intended to boost domestic value addition in electronics and electric mobility while also increasing cost competitiveness, according to the government. The notifications were released by the Central Board of Indirect Taxes and Customs.
