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Home EV Tech Battery Technology

Government Slashes Import Duty on EV Battery, Phone Parts

Aditi Singh by Aditi Singh
March 26, 2025
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In a move to boost local manufacturing and reduce costs, the Indian government has announced a reduction in import duties on essential components used for electric vehicle (EV) batteries and mobile phones. This decision is part of a larger strategy aimed at minimizing the impact of potential tariffs from the United States.

Finance Minister Nirmala Sitharaman emphasized that the government’s goal is to enhance domestic production while improving export competitiveness. This tariff reduction will specifically apply to 35 key items required for EV battery production and 28 components necessary for mobile phone manufacturing.

The duty cuts come ahead of the implementation of reciprocal U.S. tariffs, set to take effect on April 2. In response, India is negotiating with the U.S. to resolve the tariff disputes and establish a favorable bilateral trade agreement.

The move is expected to strengthen India’s manufacturing sector, particularly in the EV and mobile phone industries, which are seeing rapid growth. The government’s decision follows recommendations from a parliamentary committee to reduce import taxes on raw materials to support domestic manufacturing.

As part of the broader trade negotiations, India is considering reducing duties on nearly half of U.S. imports, valued at $23 billion, as part of the initial phase of the trade agreement discussions. This step is seen as crucial for India’s long-term economic and industrial growth.

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