FM proposes exempting responsibility on capital items utilized in lithium-ion battery manufacturing

NEW DELHI: Finance minister Nirmala Sitharaman, whereas asserting the Union Finances on Saturday introduced a proposal to increase responsibility exemptions on capital items which might be used within the manufacturing of lithium-ion batteries. This transfer aimed to spice up home manufacturing on this main sector which is crucial for electrical autos and cellphones.
The FM mentioned, “To the checklist of exempted capital items, I suggest so as to add 35 extra objects for EV battery manufacturing and 28 for cell phone battery manufacturing.”
This transfer obtained constructive response from business consultants who highlighted its potential to scale back prices and speed up India’s EV transition.
Saket Mehra, accomplice at Grant Thornton Bharat and auto & EV business chief, mentioned that the discount in customs responsibility on lithium would considerably decrease enter prices, which might end in propelling the nation’s rising EV sector.
Nirmal Okay Minda, chairman and managing director of Uno Minda, additionally famous that the federal government’s give attention to localising EV battery manufacturing and elements would improve manufacturing capacities and cut back reliance on imports.
He added that efforts to localise key EV elements like batteries, motors, and controllers would make electrical autos extra inexpensive for customers whereas strengthening India’s EV ecosystem.
Pritesh Mahajan, co-founder and CEO of Revamp Moto, additionally appreciated the federal government’s determination to completely exempt Fundamental Customs Obligation (BCD) on cobalt powder, lithium-ion battery waste, scrap, and 12 different important minerals.
He emphasised that this is able to not solely decrease manufacturing prices but in addition encourage firms to scale up operations, drive technological innovation, and create high-value jobs within the sector.
With these coverage measures, India is taking a step forewards in the direction of changing into a worldwide hub for lithium-ion battery manufacturing, decreasing dependence on imports and fostering sustainable progress within the EV and electronics industries.