Duty rationalisation shifts focus to India’s electronics component ecosystem, but deeper manufacturing gaps remain
The Centre’s decision to rationalise customs duties on capital equipment and critical inputs used in lithium-ion battery cells, display assemblies and wireless charging modules marks another step in India’s attempt to move its electronics manufacturing ambitions beyond final-product assembly and towards a stronger domestic component ecosystem.
The move complements recent initiatives such as the Electronics Component Manufacturing Scheme (ECMS) and the Semicon India Programme, both of which seek to deepen local manufacturing capabilities at a time when India is positioning itself as an alternative destination in global electronics supply chains.
For India’s electronics industry, the significance of the announcement lies less in the immediate duty reduction and more in where the incentives are being directed.
Over the past decade, India’s manufacturing growth has largely been driven by assembling smartphones and consumer electronics under production-linked incentive (PLI) schemes. While production volumes have expanded rapidly, domestic value addition remains constrained because several...
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