No Import Duty for Items Needed to Make EV Batteries, Phones: FM
In a significant move to boost the production of electric vehicles (EVs) and mobile phones, the Indian government has proposed to exempt import duties on 35 items used for manufacturing EV batteries and 28 items used for making mobile phones. This exemption will be included in the budget for FY 2025-2026, as announced by Finance Minister Nirmala Sitharaman on Tuesday.
The proposal aims to reduce the tax burden on raw materials used in the production of EV batteries and mobile phones, which will, in turn, boost domestic production and enhance export competitiveness. Sitharaman emphasized that reducing tax on raw materials will have a positive impact on the industry, making it more cost-effective and competitive.
The exemption on import duties will benefit companies such as those involved in the production of lithium-ion batteries, which are critical components of EVs. The move is expected to attract more investments in the EV sector, which is considered a key area for India’s sustainable development and growth.
Similarly, the exemption on import duties for mobile phone production will benefit companies such as those involved in the manufacturing of semiconductors, display panels, and other components. The move is expected to increase the production of mobile phones in the country, which will create more job opportunities and boost the economy.
The proposal is part of the government’s efforts to promote the production of EVs and mobile phones in the country. In recent years, the government has taken several steps to promote the growth of the EV sector, including offering incentives such as subsidies, tax breaks, and easier regulations.
The exemption on import duties will also help Indian companies to compete with foreign companies, which have traditionally dominated the global market for EV batteries and mobile phones. With the exemption, Indian companies will be able to produce these components at a lower cost, making them more competitive in the global market.
The proposal has been welcomed by industry experts, who see it as a positive step towards promoting the growth of the EV and mobile phone sectors in India. “This is a significant move by the government to promote the growth of the EV sector in India,” said Vinod Kumar, CEO of an EV battery manufacturing company. “The exemption on import duties will help us to reduce our costs and increase our competitiveness in the global market.”
The government’s move is also expected to create new job opportunities in the EV and mobile phone sectors. The production of EVs and mobile phones requires skilled labor, and the exemption on import duties is expected to attract more investments in the sector, which will create more job opportunities for Indians.
In conclusion, the proposal by the Indian government to exempt import duties on 35 items used for manufacturing EV batteries and 28 items used for making mobile phones is a significant step towards promoting the growth of these sectors in the country. The exemption will reduce the tax burden on raw materials, boost domestic production, and enhance export competitiveness. The move is expected to create new job opportunities and attract more investments in the EV and mobile phone sectors, making it a positive step towards promoting sustainable development and growth in India.
