Union Budget 2024-25: Customs Duty Exemptions to Boost EV Affordability

The proposed exemption in customs duty on the import of lithium, cobalt, and other rare minerals as part of the Union Budget 2024-25 aims to reduce battery production costs, making electric vehicles more affordable. Industry leaders welcome these measures, which are expected to propel the growth of the Indian auto sector and support infrastructure development.

The Union Budget 2024-25's proposed customs duty exemptions on lithium, cobalt, and other rare minerals could significantly lower battery production costs and boost electric vehicle (EV) affordability, according to auto industry leaders.

Finance Minister Nirmala Sitharaman announced the complete exemption of customs duties on 25 critical minerals, including reductions in Basic Customs Duty (BCD) on two. Industry leaders, such as SIAM President Vinod Aggarwal, and Deloitte India's Rajat Mahajan, expressed optimism about the future of EV production and infrastructure growth.

These financial measures promise to support sectors like nuclear energy, renewable energy, and high-tech electronics while fostering sustainable development and boosting India's tech-driven economy.