Finance Minister Nirmala Sitharaman has proposed to completely exempt colbalt powder and waste, lithium-ion battery scrap, lead, zinc and 12 other critical minerals in Budget 2025. Sitharaman said that the duty exemption will help ensure the availability of these minerals for manufacturing in India.
Sitharaman also announced the inclusion of 35 additional capital goods for EV battery manufacturing and 28 additional capital goods for mobile phone battery manufacturing.
During her 8th budget speech, Sitharaman said, “To the list of exempted capital goods, I propose to add 35 additional capital goods for EV battery manufacturing and 28 additional capital goods for mobile phone battery manufacturing. This will boost the domestic manufacture of lithium-ion batteries both for mobile phones and for electric vehicles.”
Changes in customs duty for TVs, mobile phone components:
Sitharaman announced that customs duty on interactive flat panel displays will be increased from 10% to 20%. However, she stated that the duty on the manufacture of open cells of LCD/LED televisions will be exempted from the existing 2.5%.
The Finance Minister further stated that certain parts used in the assembly of mobile phones, including camera module, connectors, USB cables, fingerprint readers, raw materials used in the manufacture of wired headsets and more, which were earlier taxed at 2.5%, will be exempted from customs duty. The move is likely to help the local manufacturing efforts of foreign companies such as Apple and Xiaomi.
Govt to set up Natural Manufacturing Mission for EV cells:
Sitharaman also announced a National Manufacturing Mission to support domestic manufacturing of solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
“To further the Make in India policy, our government will set up a National Manufacturing Mission covering small, medium, and large industries. This mission will provide policy support, execution roadmaps, and a governance and monitoring framework for central ministries and states.” Sitharaman further added
