The decision is intended to correct the inverted duty structure that has long discouraged domestic value addition in the electronics sector. At the same time, the government has reduced BCD on open cells and key components to 5 per cent, a step designed to lower input costs for local manufacturers.
Announcing the changes on social media platform X, the finance minister said the move aligns with the government’s Make in India policy. “To rectify the inverted duty structure, I propose to increase the BCD on Interactive Flat Panel Displays (IFPD) from 10 per cent to 20 per cent, while reducing the BCD to 5 per cent on open cells and other components,” the minister said.
To further encourage local manufacturing of open cells used in LCD and LED televisions, the government has also fully exempted BCD on parts of open cells, building on earlier policy measures.
The changes are expected to support domestic electronics production, reduce import dependence, and improve India’s competitiveness across the electronics value chain.
