India waives basic customs duty on key electronics components, 85 capital goods to deepen value chain
MeitY Secretary S Krishnan says BCD cuts on lithium-ion cells, display assemblies and wireless charging parts—alongside 85 exempted capital goods—will lower production costs and strengthen India's consumer electronics, smartphone and EV supply chains.
What happened
MeitY · Government waives basic customs duty on key components and 85 capital goods for electronics manufacturing—lithium-ion cells, display assemblies,
Key facts
- 85 exempted capital goods
What to watch
- Component vendor announcements of new India plants or capacity expansion
- Smartphone/EV MRP revisions in next 1-2 quarters
- PLI scheme alignment or top-ups referencing these components
- Import data showing shift from finished goods to component inflows
- Gross-margin commentary from OEMs and EMS players in earnings calls
- Retail buyers renegotiate contract pricing with domestic EMS suppliers to capture input savings
- Track OEM sourcing shifts toward India-assembled batteries and display modules
- Position private-label and value electronics to exploit lower BOM costs
- Monitor EV and wearable categories for early spec/price improvements
- Engage suppliers on capex plans tied to capital-goods exemptions