New Delhi6 minutes ago
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The Central Government has removed Basic Custom Duty (BCD) from goods used in making electronic devices like smartphones, laptops, wearables (smartwatches, fitness bands) and smart TVs in the country. With this, smartphones, laptops and smart TVs can become cheaper.
Now basic custom duty will not be imposed on goods used in the manufacturing of display assemblies, lithium-ion cells and inductor coil modules. The government has taken this step to promote domestic production.
Exemption will remain applicable till March 2029, companies’ costs will reduce
- According to the notification issued by the Finance Ministry, this discount on these components will be valid for more than 3 years i.e. till March 31, 2029.
- The purpose of this step of the government is to speed up the production of electronics goods within the country and reduce the costs of companies.
Smartphones, laptops and smart TVs can become cheaper
Industry experts believe that the display assembly and lithium-ion cells form a large part of the total cost of any smartphone, laptop or smart TV. With the removal of basic custom duty on these, companies will get great relief in manufacturing. In the coming time, companies can transfer its benefits to customers, which can reduce the prices of electronics products made in India.
The aim is to support PLI scheme and reduce dependence on imports.
This decision of the government is correct for the purposes of the ongoing Production Linked Incentive (PLI) scheme for electronics manufacturing. Currently, India has to largely depend on other countries (especially China and Vietnam) for key items like display assembly and lithium-ion cells. After this duty exemption, production will increase at the local level, which will reduce India’s dependence on foreign countries.
What is basic custom duty?
Basic Custom Duty i.e. BCD is the tax that is imposed on the import of goods coming from outside the country. Its removal means that now companies will be able to import raw materials from abroad without any additional tax and manufacture the final product in India.
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