Budget 2025: Customs Duty On Touchscreen Displays Hiked To Boost Domestic Manufacturing

During her Union Budget 2025-26 speech, finance minister Nirmala Sitharaman announced several adjustments in basic customs duty (BCD), including electronic goods.

“I propose to revise the basic customs duty (BCD) rate on electronic goods, in line with our Make in India policy and to rectify inverted duty structure,” the FM said.

The proposal includes increasing the BCD on interactive flat panel displays (IFPD) from 10% to 20% and reducing the BCD on open cells and other components to 5%.

“In the 2023-24 Budget, for manufacturing of open cells of LCD/LED TVs, I had reduced the BCD on parts of open cells from 5% to 2.5%. To further boost the manufacturing of such open cells, the BCD on these parts will now stand exempted,” she added.

In a related move, the government has removed import duties on some components key to producing mobile phones.

This policy shift seeks to boost domestic manufacturing by increasing the cost of importing finished Interactive Flat Panel Displays (IFPDs) while lowering expenses for essential components needed for local assembly.

The rise in BCD on IFPDs is anticipated to drive up prices for imported flat-screen displays, including select televisions and monitors.

India is set to become a major electronics manufacturing hub in the next decade, driven by rising local demand and stronger exports. According to an EY report, domestic production of electronics nearly doubled from FY17 to FY22 and is projected to grow at a 24% annual rate until FY27.

To boost electronics manufacturing, the Indian government has launched several schemes to boost electronics manufacturing. Production-linked schemes are one such initiative to support industry growth.