Industry bodies have praised the Central government’s decision to rationalize customs duties on capital equipment and critical inputs for electronic goods production. This move is expected to enhance domestic value addition and attract investments. The government’s rationalization of duties includes inputs for lithium-ion battery cell manufacturing, display assemblies, and wireless charging inductor coil modules.
Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), described the relief as more than just customs duty rationalization. He emphasized that this step would reduce capital costs, enhance project viability, and stimulate investments across the electronics value chain. Chandak highlighted that this initiative would propel India’s shift from an assembly-led economy to a globally competitive electronics manufacturing hub.
The policy aligns with existing schemes like the Electronics Component Manufacturing Scheme (ECMS) and the Semicon India Programme. Chandak emphasized that this strategic investment by the government would boost domestic value addition, enhance global competitiveness, and make India a more appealing destination for electronics manufacturing investments. The growth of smartphones, electric vehicles (EVs), telecom systems, medical devices, and energy storage solutions manufactured in India is expected to drive demand for semiconductors.
Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association (ICEA), welcomed the expansion of duty dispensation for display assemblies to include automotive, medical, and industrial displays. He noted that this move would help in developing industry verticals in these segments, similar to the growth witnessed in mobile and consumer electronics display assembly. The Indian electronics market is forecasted to surpass $400 billion by 2030, with semiconductor demand expected to exceed $103 billion during the same period.
Additionally, India is establishing 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 are anticipated to enhance the competitiveness of these investments and bolster supply chain resilience.
