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India hikes customs duty on electronic goods to 20%
21 Jan 2026

The Indian government has raised the Basic Customs Duty (BCD) on flat panel displays to 20%.

The move is part of a broader strategy to position India as a global hub for electronics manufacturing.

The decision also seeks to address an inverted duty structure that has long hampered domestic value addition in the electronics sector.

Government reduces BCD on open cells and components
Duty reduction

Along with increasing the BCD, the government has also reduced it on open cells and other components to 5%. This is aimed at lowering input costs for local manufacturers.

Finance Minister Nirmala Sitharaman announced these changes on social media platform X, saying they are in line with the government's Make in India policy.

Government's commitment to boost local manufacturing
Policy measures

Sitharaman further clarified the government's commitment to boosting local manufacturing of open cells used in LCD and LED televisions.

The BCD on parts of open cells has been fully exempted, building on earlier policy measures.

These changes are expected to bolster domestic electronics production, cut import dependence, and enhance India's competitiveness across the electronics value chain.