New Delhi: As part of the government’s push to strengthen the Make In India initiative, the Finance Ministry has exempted custom duty on select electronics used in the manufacture of lithium-ion cells, inductor coil modules and display assemblies, it said in a notification on Wednesday.
These exemptions, applicable immediately, will remain in force till March 31, 2029, allowing manufacturers to import specialised machines and equipment for use across the production process.
Key imported inputs in manufacturing display assemblies, automotive, medical and industrial equipment are the biggest beneficiaries. Exempted inputs include display cells, backlight units, frames, antisotripic conductive film (ACF) and flexible printed circuit assemblies (FPCAs). However, the list does not apply to display assemblies for mobile phones, smartwatches, smart meters or interactive flat panel displays. In total, the exempted list contains 85 types of specalised machinery across the entire production cycle.
To ensure uniform implementation, the Central Board of Indirect Taxes and Customs (CBIC) has issued technical definitions for these components.
The measures come as a part of the government’s broader strategy to attract investment into high tech manufacturing and to strengthen the local supply chains for electric mobility and consumer electronics. According to experts, cheaper access to specalised machinery and components could boost domestic value addition, especially for companies working under India’s Production-Linked Incentive scheme.
Following the news, leading electronics assemblers like Dixon Technologies, Syrma SGS Technologies and Amber Technologies rallied up to 6%, with this tax holiday helping them boost their margins down the line.
