• The Centre has issued three customs notifications providing basic customs duty (BCD) exemptions on select electronics and battery manufacturing inputs.

• The move aims to reduce import costs, improve cost competitiveness, and boost domestic value addition.

• Five components used in display assemblies for automotive, medical, and industrial applications have been exempted from BCD until March 31, 2029.

• Exempted display components include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames, and anisotropic conductive film (ACF).

• The exemption does not apply to display assemblies used in mobile phones, smartwatches, smart meters, TV panels, and interactive flat-panel displays.

• The government has also extended nil customs duty until March 31, 2029, on six components used in wireless charging modules for mobile phones.

• Exempted wireless charging components include nano-crystalline assemblies, E-shields, PET liners, PC shims, stranded and NFC coils, and NdFeB magnets.

• The list of machinery eligible for concessional customs duty for lithium-ion cell manufacturing has been expanded to 85 capital goods.

• The revised list covers equipment such as coating machines, winding machines, welding systems, testing equipment, formation machines, and drying systems.

• The duty relief is expected to encourage localisation, strengthen India’s electronics manufacturing ecosystem, and support high-value manufacturing.

• The expanded incentives for lithium-ion cell manufacturing are also expected to accelerate investments in domestic battery production and support India’s electric mobility ambitions.