Shares of Electronic Manufacturing Services (EMS) like Dixon Tech and Kaynes are in action as the government has waived basic customs duty on goods used in the manufacture of display assemblies, lithium-ion cells, and inductor coil modules. The step is being seen as a push to make India a global hub of electronics manufacturing and promote domestic production of electronic devices like smartphones, laptops, wearables and smart TVs. This exemption would be valid till March 31, 2029, the notifications said.
Finance Ministry issues notification
According to a notification issued by the Ministry of Finance, several specialised machinery and equipment used in the manufacture of lithium-ion cells have been exempted from customs duty. These include powder dryers, automatic feeding and blending systems, slurry transfer systems, cathode and anode coating machines, high vacuum pumps, winding machines, cutting machines, testing machines, auto-packing systems, stacking machines, welding machines, and other modern equipment. Additionally, essential materials used in the manufacture of display assembly and inductor coil modules will also be exempt from customs duty.
What will be the impact on the prices of mobiles and laptops?
This government decision is expected to reduce production costs for electronics companies. As companies gain access to essential machinery and parts at lower prices, future prices of mobile phones, laptops, smart TVs, smartwatches, and other electronic devices may also be positively affected. However, whether these price reductions will be effective immediately depends on the companies’ costs and market conditions.
