Shares Of Electronics Manufacturers Rise After Govt Extends Electronics Duty Relief Till 2029

Shares of electronics manufacturing companies moved higher on Thursday after the Centre extended customs duty concessions on a wide range of machinery and components used in electronics manufacturing until March 31, 2029.

Dixon Technologies gained as much as 4.7% to Rs 13,544, while Amber Enterprises rose 2.5% to Rs 7,607.50. Kaynes Technology also advanced 3.7% to Rs 3,328.90 during the trading session.

The government’s decision, which has come into immediate effect, is aimed at reducing the cost burden on manufacturers importing specialised machinery and components that are currently not produced in sufficient quantities domestically.

The move is expected to encourage investments in sectors such as lithium-ion battery manufacturing, automotive electronics and advanced electronics assembly.

The Central Board of Indirect Taxes and Customs (CBIC) has significantly expanded the list of equipment eligible for concessional customs duty benefits for lithium-ion battery manufacturing.

The revised framework now includes 85 categories of machinery covering various stages of the battery production process.

The eligible equipment includes machinery used for material preparation, mixing, coating, pressing, slitting, electrode stacking, winding, electrolyte filling, welding, testing, ageing, inspection and final packaging.

The concessions also cover supporting systems such as solvent recovery units, heat recovery equipment, dust collection systems and effluent treatment plants.

The government has also extended customs duty relief for five important components used in manufacturing display assemblies for automotive, medical and industrial applications.

These include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film (ACF).

However, the exemption does not apply to display assemblies used in consumer electronics products such as mobile phones, smartwatches, televisions, smart meters and interactive flat-panel displays.

In another step to support the electronics ecosystem, the Centre has provided concessional customs duty treatment for six components used in manufacturing wireless charging inductor coil modules for smartphones.

These components include nano-crystalline assemblies, E-shields, PET liners, PC shims, coils and neodymium magnets.

The measures are part of the government’s broader strategy to strengthen domestic electronics manufacturing capabilities, reduce import dependence and build resilient supply chains for emerging sectors including electric vehicles and advanced technology products.

The duty relief is expected to benefit electronics manufacturers by lowering input costs, improving competitiveness and encouraging greater investment in domestic production facilities.