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Government of India has extended customs duty concessions on key components used in electronics and lithium-ion battery

ICICIdirect Research 09 Jul 2026 DISCLAIMER

News: As per media sources, government of India has extended customs duty concessions on key components used in electronics and lithium-ion battery manufacturing until March 2029, providing long-term policy support to domestic manufacturing under the "Make in India" initiative. The extension covers duty relief on critical inputs required to produce electronic goods and lithium-ion batteries, aiming to lower manufacturing costs, encourage fresh investments, strengthen local value addition, and reduce dependence on imports. The move is expected to support the rapid expansion of India's electronics, electric vehicle (EV), and energy storage ecosystems while enhancing the country's competitiveness as a global manufacturing hub.

View: The policy extension is a positive development for India's electronics and EV supply chain, as it provides long-term visibility for manufacturers planning capacity expansion. Lower input costs and continued duty benefits are likely to improve project viability, accelerate localisation, and attract further investments in battery cells, battery materials, and electronic components. Companies such as Exide Industries, Amara Raja Energy & Mobility, Ola Cell Technologies, and other domestic battery stand to benefit from a more supportive policy environment, strengthening India's position in the global clean energy and advanced manufacturing value chain.

Impact: Positive

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