Govt Scraps Import Duties on EV Battery and Mobile Phone Components

The Indian government has announced a waiver on import duties for several essential components used in the manufacturing of electric vehicle (EV) batteries and mobile phones.

This move is part of a broader effort to support domestic production and enhance the global competitiveness of Indian manufacturers.

Boosting Local Manufacturing

Speaking ahead of the Finance Bill 2025 vote in Parliament, Finance Minister Nirmala Sitharaman emphasised the government’s goal of strengthening the domestic manufacturing sector.

To facilitate this, import duties will be removed for 35 components required in EV battery production and 28 components used in mobile phone manufacturing.

This decision aligns with India’s strategy to reduce manufacturing costs, encourage local industries, and support the country’s transition towards clean energy and self-reliance in technology production.

A Response to Global Trade Developments

The policy shift comes amid ongoing negotiations between India and the United States to address tariff disputes and work toward a bilateral trade agreement. With the US set to impose reciprocal tariffs from April 2, India is proactively reducing import levies on raw materials to mitigate any potential economic impact.

According to a Reuters report citing sources, New Delhi is considering reducing tariffs on more than half of U.S. imports—approximately $23 billion—as part of the initial phase of an ongoing trade deal discussion. The government’s move to cut import duties is seen as a preparatory step to strengthen local manufacturers and align with international trade negotiations.

Recommendations from Experts

A recent Indian parliamentary committee also recommended tariff reductions on imported raw materials to further support domestic producers.

Lowering these costs will provide relief to industries dependent on global supply chains and make Indian products more competitive in the international market.

What This Means for the Industry?

For EV manufacturers, the exemption on key battery components is a significant step toward reducing production costs and accelerating India’s electric mobility transition. The mobile phone industry, a major contributor to India’s electronics sector, will also benefit from reduced costs, making domestic assembly and production more attractive.

Conclusion

The government’s decision to eliminate import duties on critical raw materials reflects its commitment to fostering domestic manufacturing and staying competitive in the global market.

However, the long-term impact will depend on how effectively these tariff cuts translate into lower production costs, increased investment, and growth in exports.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.