Government to Boost Local Manufacturing: Custom duty removed on electronic parts ahead of festive season, making everything from smartphones to cars cheaper.

The electronic parts on which the government has removed customs duty majorly include: Display Cell Backlight Unit Flexible Printed Circuit Assembly (FPCA) NFC Coil and NdFeB Magnet. All these components are used in the manufacture of smartphones, cars, medical devices and other electronic devices.

The government has given this exemption till March 31, 2029, which will give companies enough time to increase investment and increase production in the country.

Many sectors will benefit from this decision. First, the automobile sector - displays and wireless charging systems in cars will now be cheaper. Secondly, companies manufacturing medical gadgets will also benefit as these components are also used in medical devices. Thirdly, companies manufacturing displays for industrial machines will also get relief.

And most importantly - smartphone manufacturers will benefit the most, because the display and charging components in the smartphone are among the most expensive parts.

When the production cost of companies decreases, it ultimately has an impact on the price of the products. It is believed that in the festive season, companies will pass on this cost savings to customers, which can make smartphones, TVs, cars and other electronic products cheaper than before.

In particular, reducing the cost of displays can bring down the prices of smartphones and TVs by 5-10%. Apart from this, companies can also take advantage of this discount in the form of additional discounts or cashback offers in the festive sale.

The government believes that this decision will reduce the production cost of electronics companies and more and more electronic parts will be made in India. At present, many essential components are imported from abroad (especially China and Vietnam).

The removal of customs duty will reduce their cost and make electronic products made in India more competitive in the global market. The move will strengthen the 'Make in India' initiative and help make India a major global hub for electronics manufacturing.

"The duty exemption will help electronics companies reduce cost of production, increase investment and generate employment," it said.

According to government officials, the move will strengthen the domestic electronics manufacturing ecosystem and also help the country reduce dependence on imports. It is expected that this decision will bring new investments and increase employment opportunities.

The relaxation has been given till March 31, 2029, so electronics manufacturing in India is expected to accelerate in the coming 2.5 years. Companies will now try to make more parts in India itself, which will reduce the import bill and also benefit the country's economy.

In addition, this decision will increase competition in the smartphone, TV, car and medical device sector, which will ultimately be beneficial for customers.

The government's decision to remove customs duty on electronic parts is a big and far-reaching step.

This will make essential components like display modules, backlight units, FPCA, NFC coils and NdFeB magnets cheaper, which will impact every electronic product from smartphones to cars. The exemption, valid till March 31, 2029, will allow companies to increase investment and start production in India itself.

Customers are expected to get the benefit of cheaper prices during the festive season. The government believes that this decision will boost electronics manufacturing, increase employment and take India one more step towards becoming a global electronics hub. Stay tuned to timesbull.com for all the latest updates on government schemes, policies and festive offers.