Union Budget 2024-25: Boost for EV Sector with Customs Duty Exemptions on Critical Minerals

The Union Budget 2024-25 proposes customs duty exemptions and reductions on critical minerals like lithium and cobalt, potentially lowering battery production costs and making electric vehicles more affordable. This move is expected to stimulate growth in India's EV sector and reinforce the country's focus on sustainable and inclusive development.

In a significant move outlined in the Union Budget 2024-25, Finance Minister Nirmala Sitharaman proposed customs duty exemptions for 25 critical minerals, including lithium and cobalt. These exemptions aim to lower battery production costs and make electric vehicles (EVs) more affordable for consumers.

The budget also reduces Basic Customs Duty (BCD) on two essential minerals, further bolstering the processing and availability of these materials crucial for sectors like renewable energy, defense, and high-tech electronics. Auto industry leaders have welcomed these changes, with many highlighting the potential boost to infrastructure and rural development.

Experts believe the exemptions will encourage domestic manufacturing and recycling of batteries, strengthening India's EV ecosystem. This strategic move aligns with the government's priorities of fostering sustainable development and positioning India as a technology-driven economy.

(With inputs from agencies.)