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

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

SUMMARY

The finance minister has proposed to increase the basic customs duty on interactive flat panel displays (IFPD) from 10% to 20% and reduce the same on open cells and other components to 5%

The government has removed import duties on some components key to producing mobile phones

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

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.

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Budget 2025: Customs Duty On Touchscreen Displays Hiked To Boost Domestic Manufacturing-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Budget 2025: Customs Duty On Touchscreen Displays Hiked To Boost Domestic Manufacturing-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Budget 2025: Customs Duty On Touchscreen Displays Hiked To Boost Domestic Manufacturing-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Budget 2025: Customs Duty On Touchscreen Displays Hiked To Boost Domestic Manufacturing-Inc42 Media
Budget 2025: Customs Duty On Touchscreen Displays Hiked To Boost Domestic Manufacturing-Inc42 Media
You’re in Good company