Govt to Boost Local Manufacturing: If you are planning to buy electronic gadgets for yourself, there is good news. The festive season in India is about to begin, kicking off with Raksha Bandhan. You may have noticed that people start planning their purchases of electronic goods during this time; specifically, on the occasion of Rakhi, many brothers gift electronic gadgets to their sisters. This festive season also brings a host of sales.
Indian families often wait until the festive season to purchase electronic gadgets or appliances. Now, the government has also devised a specific plan regarding this. You will no longer have to wait for a sale to buy electronic goods. The government has made a major decision to boost domestic production of electronic goods by waiving customs duties on imports of components and capital goods. This move is set to lower the prices of products ranging from smartphones to other electronic goods.
The Central Board of Indirect Taxes and Customs (CBIC) has issued three separate notifications listing all items eligible for customs duty exemptions and concessional rates.
What is the Government of India’s plan?
To promote electronics manufacturing in the country, the Government of India has decided to remove customs duties on several essential electronic parts. Customs duty will no longer apply to key components used in the manufacture of display modules and wireless charging systems. This move will benefit smartphone manufacturers as well as companies producing displays for automobiles, medical gadgets, and industrial machinery.
Exempted items included in the first list
According to the government notification, five key components used in manufacturing display assemblies for automotive, medical, and industrial applications will be exempt from Basic Customs Duty until March 31, 2029.
Which parts are exempt from customs duty?
Display cell
Backlight unit
Flexible Printed Circuit Assembly (FPCA)
NFC coil
NdFeB magnets
All these essential components are used in the manufacturing of smartphones, cars, medical devices, and other electronic equipment. The government has granted these exemptions until March 31, 2029.
Exempted items included in the second list:
Nano-crystalline assembly, e-shield, PET liner, PC shim, stranded and NFC coils, Neodymium-Iron-Boron (NdFeB) magnets.