India’s electronics manufacturing sector is moving beyond the assembly model and taking meaningful steps towards component manufacturing and deeper value chain development. In line with this, the government has announced relief in basic customs duty on several key components and machinery related to electronics, lithium-ion batteries, and smartphone wireless charging. The objective is to reduce the cost of imported inputs, strengthen domestic manufacturing, and encourage high-value electronics production in India.
Let us understand India’s latest electronics manufacturing push in detail and see whether this theme could emerge as a significant investment opportunity for investors.
What’s Happening?
The government has provided customs duty relief on selected components used in display assemblies, lithium-ion battery manufacturing, and smartphone wireless charging modules. Inputs such as display cells, backlight units, flexible printed circuit assemblies (FPCAs), frames, and anisotropic conductive film (ACF) used in display assemblies have been included under the exemption. This relief is particularly significant for display assemblies used in automotive, medical, and industrial equipment.
However, the exemption does not cover all display products. Display assemblies used in mobile phones, smartwatches, televisions, smart meters, and interactive flat-panel displays have been excluded. This clearly indicates that the government intends to promote selected industrial and advanced electronics segments rather than the broader consumer electronics market.
Strengthening the Lithium-Ion Battery Supply Chain
The second major part of the announcement relates to lithium-ion battery manufacturing. The government has expanded the list of machinery eligible for concessional customs duty to 85 categories. These include machinery used across the battery manufacturing process, from powder preparation, slurry mixing, coating, calendering, slitting, electrode stacking, and winding to electrolyte filling, laser welding, formation, aging, testing, inspection, and final packaging.
In addition, supporting infrastructure such as solvent recovery units, heat recovery equipment, dust collection systems, and effluent treatment plants has also been included. This means the relief extends across almost the entire battery production chain rather than being limited to a few machines or stages of manufacturing. The move is expected to provide structural support to sectors such as electric mobility and energy storage.
Focus on Wireless Charging and Component Ecosystem
The government has also announced concessional customs duty on six key components used in wireless charging inductor coil modules for smartphones. These include nano-crystalline assemblies, E-shields, PET liners, PC shims, coils, and neodymium magnets. Alongside this, the Central Board of Indirect Taxes and Customs (CBIC) has prescribed technical specifications for these components to ensure uniform interpretation of the rules across customs ports.
This move goes beyond reducing costs. It is also aimed at strengthening India’s advanced electronics manufacturing ecosystem. Manufacturers that meet the prescribed conditions will be eligible for the concessional duty benefit, which is expected to support the development of domestic capabilities in wireless charging, battery manufacturing, and the electric mobility supply chain.
What Does This Mean for Investors?
The government’s decision has been particularly positive for the Electronics Manufacturing Services (EMS) sector. Following the removal of basic customs duty on components used in the manufacturing of display assemblies, lithium-ion cells, and inductor coil modules, several EMS stocks witnessed strong buying interest.
On July 9, 2026, shares of Kaynes Technology rose 7.5% to Rs 1,446. Meanwhile, PG Electroplast, Dixon Technologies, Syrma SGS Technology, and Amber Enterprises also gained up to 6% during the trading session. This suggests that the market views the announcement as a positive development for domestic electronics manufacturing and the sector’s long-term growth prospects.
What’s Next?
The government has extended the customs duty concessions on machinery and key components used in electronics manufacturing until March 31, 2029. The relief has come into effect immediately and is expected to reduce manufacturing costs while encouraging fresh investments in the sector.
The move is part of the government’s broader strategy to position India as a global electronics manufacturing hub. As part of this effort, the Electronics Component Manufacturing Scheme (ECMS), with an outlay of Rs 40,000 crore, has been expanded. In addition, the recently announced India Semiconductor Mission 2.0 aims to strengthen the country’s semiconductor and display ecosystem, reduce import dependence, and enhance India’s competitiveness in advanced electronics manufacturing.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
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