India Eliminates Import Duties on Key Smartphone Components in Boost for Apple

India has eliminated import duties on several key electronic and smartphone components, offering a financial break to major manufacturers operating in the country.



The tax exemption eliminates the previous 5% and 7.5% import duties on specific parts, including lithium-ion cells and components used to manufacture wireless charging modules for smartphones. It also covers certain displays used in medical devices and automobiles. According to Reuters, the tariff cut will remain in effect until March 31, 2029.


The exemption could lower costs for Apple as the company continues to shift its supply chain away from China. Apple is estimated to assemble roughly a quarter of all iPhones in India and recently surpassed $50 billion in cumulative iPhone exports from the region. Lower import costs could make local assembly more competitive for Apple and rivals like Xiaomi.

Manoj Mishra, a partner at business consultancy Grant Thornton Bharat, said the exemption should boost cost competitiveness, domestic value addition, and localization of high-value smartphone and electronics manufacturing. He added that removing the tax on lithium-ion cells could spur new investment in domestic battery production for electronics and electric mobility.

Smartphone manufacturing in India has climbed rapidly over the past decade, reaching $57 billion in the 2024 to 2025 fiscal year. India aims to expand its electronics manufacturing industry to $500 billion by fiscal 2030.