Finance Minister Unveils Major Customs Duty Revisions

Finance Minister Nirmala Sitharaman announced significant changes in customs duties, including exemptions on critical minerals and cancer drugs. The move aims to bolster local manufacturing and job creation. Key proposals address strategic mineral processing, EV battery manufacturing, shipbuilding, and import reliefs for essential drugs and materials.

Finance Minister Nirmala Sitharaman announced the removal of import duties on key items such as lithium-ion batteries, cobalt products, and essential drugs for cancer during her budget presentation. This measure is expected to enhance local manufacturing and availability of these critical materials.

The new budget proposes strategic exemptions and reduced duties to support processing and refining in essential sectors. Customs duties on 25 critical minerals will be fully exempted, promoting their use in critical industries. Exemptions on Basic Customs Duty for shipbuilding components will continue for an additional decade to boost competitiveness.

In alignment with the Make in India policy, duties on select technology components will be adjusted. Furthermore, medicines for severe ailments including cancer will benefit from duty exemptions to support patients and healthcare manufacturers.