Electronics Shares Rise After Duty Relief Extension

On Thursday, shares of electronics manufacturing companies saw a significant increase after the Centre extended customs duty concessions on various machinery and components used in electronics manufacturing until March 31, 2029.

Dixon Technologies' shares rose by as much as 4.7% to Rs 13,544, while Amber Enterprises' shares increased by 2.5% to Rs 7,607.50. Kaynes Technology also saw a 3.7% increase to Rs 3,328.90 during the trading session.

The government's decision aims to reduce the cost burden on manufacturers importing specialised machinery and components that are currently not produced in sufficient quantities domestically. This move is expected to encourage investments in sectors such as lithium-ion battery manufacturing, automotive electronics, and advanced electronics assembly.

The Central Board of Indirect Taxes and Customs (CBIC) has expanded the list of equipment eligible for concessional customs duty benefits for lithium-ion battery manufacturing, covering 85 categories of machinery. The concessions also cover supporting systems such as solvent recovery units and effluent treatment plants.

Additionally, the government has extended customs duty relief for five important components used in manufacturing display assemblies for automotive, medical, and industrial applications. The Centre has also provided concessional customs duty treatment for six components used in manufacturing wireless charging inductor coil modules for smartphones.

These measures are part of the government's broader strategy to strengthen domestic electronics manufacturing capabilities, reduce import dependence, and build resilient supply chains for emerging sectors. The duty relief is expected to benefit electronics manufacturers by lowering input costs, improving competitiveness, and encouraging greater investment in domestic production facilities.