In the first full Budget under the Modi Government 3.0, Finance Minister Nirmala Sitharaman proposed the removal of Basic Customs Duty (BCD) on key minerals essential for manufacturing electric vehicle batteries. This move is a significant step towards making electric vehicles more affordable and aligns with the government’s goal of achieving 30 per cent of automobile sales as EVs by 2030, accelerating progress towards a more sustainable future. To bolster domestic manufacturing, the Finance Minister has introduced tax incentives, including full exemption from Basic Customs Duty (BCD) on key materials like cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and twelve other critical minerals. Furthermore, reducing import duties on essential battery production equipment aims to lower EV battery costs, ultimately making electric vehicles more affordable. This decrease in operational expenses will stimulate the expansion of India’s EV battery industry and enhance domestic production capabilities.

Covered By: Mobility India / EV
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