No import duty on 35 capital goods used to make EV batteries

Finance Minister Nirmala Sitharaman announces no import duties on goods for EV batteries and mobile phone manufacturing to boost domestic production.

Finance Minister Nirmala Sitharaman on Tuesday (March 25, 2025) announced there would be no import duties on 35 capital goods used to make Electric Vehicle (EV) batteries and 28 items used in mobile phone battery making to boost domestic manufacturing.

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Replying to the debate on the Finance Bill, which was passed by the Lok Sabha, the Finance Minister said Customs tariff rationalisation in Budget 2025 was aimed at boosting domestic production, enhancing export competitiveness by reducing duties on raw materials and inputs and making domestic products cost-effective.

“This Finance Bill 2025 relating to the Customs aims to rationalise tariff structure and address duty inversion. These will also support manufacturing units, domestic value addition, promote exports, facilitate trade and also provide relief to the common people,” Ms. Sitharaman said.

The government moved 35 official amendments to the Finance Bill, including one to abolish a six per cent digital tax on online advertisements, during its passage in the Lower House.

Calling the rationalisation of Customs a “very big step forward,” the Minister said importers would benefit while exporting industries, that import parts and components, would become cost competitive.

The announcement came just ahead of a U.S. delegation arriving in India to carry forward talks on President Donald Trump’s proposal of imposing reciprocal tariffs. However, Ms. Sitharaman asserted that the process of Customs tariff rationalisation had been going for the past two years.