NEW DELHI: In a major move to boost domestic electronics manufacturing and clean energy supply chains, the Ministry of Finance has completely exempted customs duty on specified machinery and equipment used in the manufacture of lithium-ion cells, inductor coil modules, and display assemblies.
The Department of Revenue, under the Finance Ministry, rolled out these changes via an amended Customs Notification dated Wednesday, July 8, 2026. The critical measures have been implemented with immediate effect, under provisions enacted in the public interest.
Massive Expansion of Duty-Free Imports
The latest notification significantly expands the list of advanced machinery and specialized systems that can now be imported into India without any customs duty payment. The waiver heavily blankets the entire production lifecycle of advanced battery manufacturing.
The extensive list of exempted core production and processing machinery includes:
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Material Processing: Powder dryers, automatic feeding and blending systems, and slurry transfer systems.
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Cell Assembly & Fabrication: Cathode and anode extrusion coating machines, compression equipment, winding machines, electrode cutting and slitting machines, separator coating machines, and stacking machines.
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Welding & Refining: Laser welding and notching equipment, ultrasonic cleaning machines, and standard welding machines.
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Thermal & Chemical Processing: High vacuum pumps, electrolyte injection machines, solvent and heat recovery systems, and cell baking and cooling units.
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Quality Control & Safety: Cell formation and inspection systems, advanced testing machines, auto-packing systems, specialized racks, and integrated water sprinkler systems.
Empowering India’s Component Ecosystem
Beyond advanced lithium-ion cells—which form the backbone of the electric vehicle (EV) and portable electronics industries—the notification explicitly extends duty exemptions to critical inputs and goods required to manufacture inductor coil modules and display assemblies.
By slashing the financial burden of importing these sophisticated inputs, the government directly aims to lower structural production costs for domestic manufacturers.
Strengthening ‘Viksit Bharat’ Manufacturing
The policy shift is expected to significantly fortify India’s manufacturing ecosystem for advanced batteries and high-tech electronic components.
Industry experts anticipate that the duty waivers will encourage local value addition, attract fresh capital investment, and rapidly expand domestic production capacities. This aligns with the government’s broader strategic push to achieve self-reliance in key technology and clean energy sectors, reducing long-term dependence on imported electronic components.
