Duty-free imports for EV batteries and mobiles to aid local industry

India has removed import duties on key raw materials for electric vehicle batteries and mobile phones to strengthen domestic manufacturing and enhance export competitiveness. The move comes as the country prepares for potential US tariffs and works toward a bilateral trade agreement.

The Indian government announced on Tuesday that it would eliminate import duties on several raw materials used in the production of electric vehicle (EV) batteries and mobile phones. This decision is part of a broader effort to lower tariffs and support local manufacturers in response to potential US trade restrictions.

Finance Minister Nirmala Sitharaman stated that reducing duties on raw materials aims to strengthen domestic production and improve export competitiveness. She confirmed that 35 components used in EV battery production and 28 items used in mobile phone manufacturing would be exempt from import duties.

The move comes as India prepares for the impact of US President Donald Trump’s reciprocal tariffs, set to take effect on April 2. The two nations are currently negotiating to resolve trade disputes and establish a bilateral trade agreement.

According to a Reuters report citing government sources, India is willing to lower tariffs on over half of the US$ 23 billion worth of US imports in the first phase of the trade deal. The report highlights India’s openness to making concessions to facilitate smoother trade relations with the US.

Last week, an Indian parliamentary committee recommended reducing tariffs on raw material imports to support local manufacturers. The government’s latest policy shift aligns with this recommendation, reflecting its commitment to boosting domestic industries while managing global trade challenges.

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