India scraps import duty on smartphone parts, giving Xiaomi and Samsung a cost break till 2029

India has removed import duties on several components used to manufacture smartphones and other electronic devices, a move that could cut input costs for companies including Xiaomi, Samsung and Apple, according to a Reuters report. The exemption will stay in force until March 31, 2029, and removes existing 7.5% and 5% basic customs duties on identified components and machinery.

The exemption covers inputs used in inductor coil modules for wireless charging in mobile phones, components used in display assemblies for automotive, medical and industrial applications, and lithium-ion cells, according to notifications from the Finance Ministry and the Central Board of Indirect Taxes and Customs. The government has also introduced a technology-neutral exemption covering machinery used at different stages of lithium-ion battery manufacturing.

Manoj Mishra, Partner at Grant Thornton Bharat, said the move “should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing,” adding that the lithium-ion cell exemption “may spur investment in domestic battery production for electronics and electric mobility.”

The changes build on India’s Production Linked Incentive scheme aimed at expanding domestic electronics production, with the country targeting a $500 billion electronics manufacturing sector by fiscal year 2030. Government data shows smartphone production in India has grown 28-fold over the past decade, reaching Rs 5.45 trillion (about $57 billion) in FY 2024-25.