The Indian government has fully exempted basic customs duty on materials used in lithium-ion battery production. This move is expected to reduce EV manufacturing costs, making electric vehicles more affordable and accessible for consumers.

Strengthening Domestic EV Manufacturing
Industry leaders believe this policy will help build a local manufacturing ecosystem for EV components. Currently, batteries account for 40% of an EV’s cost and are primarily imported from China and Taiwan. Nirmal K Minda, chairman of Uno Minda, highlighted that localizing battery, motor, and controller production will reduce dependence on imports and strengthen India’s EV supply chain.
Support from National Manufacturing Mission
The Clean Tech Mission and the National Manufacturing Mission aim to boost domestic EV production. Shailesh Chandra, president of SIAM, welcomed the exemption of customs duty on critical minerals like cobalt, lead, zinc, and lithium-ion battery scraps, stating that it will drive value addition in India’s EV industry.
Encouraging Investment and Job Creation
Finance Minister Nirmala Sitharaman has proposed adding 35 more capital goods to the exemption list, further encouraging domestic battery manufacturing. Pritesh Mahajan, CEO of Revamp Moto, emphasized that this policy will lower production costs, attract investment, drive technological advancements, and create high-value jobs in the EV sector