Govt removes import tax on EV batteries, mobile parts

The Central Government’s decision regarding EVs means that 35 goods used in the manufacture of EV batteries will not be subject to import duties.

The central government has removed the import tax on necessary components used in producing mobile phones and electric vehicles, which will help enterprises that make these devices. The administration made this announcement on Tuesday.

Union Finance Minister Nirmala Sitharaman provided information regarding the move, stating that it was made in an attempt to increase export competitiveness and domestic manufacturing. In order to lessen the possible impact of tariffs, this is a component of a total duty cut.

Before the Finance Ordinance 2025 was passed by Parliament, the Finance Minister stated: “We are lowering these duties on raw materials to encourage domestic production and boost export competitiveness.”

It is important to note that in the first round of negotiations with the Trump administration, the Indian government is thinking of lowering levies on over half of US imports valued at roughly Rs 1.9 lakh crore ($23 billion), according to a previous report by news agency Reuters.

35 goods used in the manufacture of EV batteries would not be subject to import duties as a result of the Central Government’s decision regarding EVs. On the other hand, 28 goods utilized in the manufacturing of mobile phones will not require import duties.

Donald Trump declared reciprocal tariffs on April 2nd, following his reelection as President of the United States. Under such circumstances, a global trade war may potentially break out. India has, nevertheless, signaled a reduction in the import tax on US goods. It is anticipated that the high-level American delegation visiting India will have a thorough conversation on this topic. This government action is regarded as crucial in this scenario for encouraging domestic production.

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