Government waives import duty on inputs for manufacturing batteries, display assemblies

📌 Summary:

• Finance ministry exempted customs duty, till March 2029, on 85 capital goods used in lithium-ion cell manufacturing, plus inputs for display assemblies and inductor-coil modules for wireless charging in mobile phones — to promote domestic electronics manufacturing

• Exempted items include backlight units, frames, anisotropic conductive film, cathode and anode extrusion coating machines, powder dryers and slurry transfer systems

• Key change: the earlier Li-ion exemption was linked to cells for specific downstream uses (mobile phones, EVs, energy storage); the notification merges entries and removes that restriction — supporting cell manufacturing for batteries across electronics, electric mobility, energy storage and other applications

• Display-assembly relief extends beyond consumer electronics to automotive, medical and industrial sectors; inductor-coil exemption deepens value addition in mobile phone manufacturing (wireless charging)

• Concern flagged: electronics FDI nearly halved from $2.04 billion (FY25) to $1.15 billion (FY26) despite record aggregate inflows — possibly signalling moderation of the PLI-linked initial investment cycle

• Context (Lok Sabha reply): mobile manufacturing units rose from 2 (2014-15) to 300 (2024-25); production up 28-fold to ₹5.45 lakh crore; exports up 127-fold to ₹2 lakh crore

🎯 UPSC Relevance: GS3 Indian Economy — tariff policy as an industrial policy tool, integrating India into global electronics value chains, PLI scheme trajectory, battery manufacturing for energy transition.

📝 Prelims Facts:

• Customs duty exemption on 85 capital goods for lithium-ion cell manufacturing, valid till March 2029
• Electronics FDI: $2.04 bn (FY25) → $1.15 bn (FY26)
• Mobile manufacturing units: 2 (2014-15) → 300 (2024-25); exports ₹2 lakh crore (127-fold rise)

🔑 Key Term: Production Linked Incentive (PLI) — a scheme giving manufacturers incentives on incremental sales of India-made goods, anchoring the electronics/mobile manufacturing push.