India scraps import duties on EV battery and mobile phone components amid tariff cuts
New Delhi: The Indian government announced on Tuesday that it would remove import duties on various raw materials used in the production of electric vehicle (EV) batteries and mobile phones, media reports said.
The decision is part of broader tariff reductions aimed at strengthening domestic manufacturing and helping local producers cope with potential U.S. reciprocal tariffs.
Finance Minister Nirmala Sitharaman stated ahead of the Finance Bill 2025 vote in parliament that the government aims to boost domestic production and enhance export competitiveness by reducing duties on raw materials, according to reports.
She confirmed that 35 items used in EV battery production and 28 items for mobile phone manufacturing would now be exempt from import duties.
The move comes as India prepares for the impact of U.S. President Donald Trump’s reciprocal tariffs, set to take effect on April 2.
The two nations are in discussions to address tariff disputes and work towards a bilateral trade agreement.
Reuters reported on Tuesday, citing two government sources, that India is open to reducing tariffs on over half of U.S. imports worth $23 billion as part of the first phase of ongoing trade negotiations.
Last week, an Indian parliamentary committee recommended cutting tariffs on imported raw materials to support local manufacturers, aligning with the government’s latest policy shift.
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