Government Removes Import Duty on Key Smartphone Components in Boost to Apple, Xiaomi and Local Manufacturing

India has removed import duties on several components used to manufacture smartphones and other electronic devices, giving a fresh push to the country's electronics manufacturing ambitions. The decision eliminates 7.5% and 5% customs duties on a range of key components, a move that could benefit manufacturers such as Apple, Xiaomi, and other companies producing devices in India.

The exemptions will remain in effect until March 31, 2029, providing manufacturers with greater certainty as they expand production in the country.

Which Components Get Duty Relief?

The government has removed import duties on several high-value components, including:

1. Parts used to manufacture wireless charging modules for smartphones.
2. Components for displays used in medical devices and automobiles.
3. Lithium-ion cells, a key component used in smartphones, laptops and electric vehicles.

The move is expected to reduce production costs for electronics manufacturers while encouraging greater domestic assembly.

A Big Win for Smartphone Makers

India has become one of the world's largest smartphone manufacturing hubs over the past few years, with global brands including Apple and Xiaomi steadily increasing local production. Lower import duties on critical components are expected to improve the competitiveness of manufacturing in India, particularly for premium smartphones that rely on sophisticated parts such as wireless charging systems.

Industry experts believe the decision could also encourage suppliers to establish more component manufacturing operations within India over time.

Part of India's Bigger Manufacturing Plan

The latest duty relief aligns with the government's broader goal of making India a global electronics manufacturing hub. The government is targeting $500 billion in electronics manufacturing by FY2030, supported by production-linked incentive (PLI) schemes and increased investments from global technology companies.

The strategy has already produced significant results. Smartphone production in India has increased 28-fold over the past decade, reaching ₹5.45 trillion (about $57 billion) during FY2024-25, according to Reuters.

For companies such as Apple and Xiaomi, the latest duty exemptions could further strengthen the business case for expanding manufacturing in India. For the government, it is another step towards moving beyond final assembly and building a deeper, more self-reliant electronics supply chain.