India ends import duty on items needed to make EV batteries, phones
India will exempt from import duty 35 items used to make EV batteries and 28 items used in mobile phone manufacturing. The move comes amid talks between India and the US to resolve tariff issues.
India has said there would be no import duties on several goods used to manufacture EV batteries and mobile phones in a bid to shield local producers from the impact of US President Donald Trump’s reciprocal tariffs that are set to take effect from April 2.
The Indian government will exempt from import duty 35 items used to make EV batteries and 28 items used in mobile phone manufacturing.
“We aim to boost domestic production and enhance export competitiveness by reducing duties on raw materials,” India’s finance minister Nirmala Sitharaman said.
The move comes as Indian and US officials are engaged in talks to reach a trade agreement and resolve tariff issues.
New Delhi is mulling slashing tariffs on over half of US imports worth USD 23 billion in the first phase of a trade deal that the two nations are negotiating, sources have told Reuters.
An Indian parliamentary committee has recommended that the government cut tariffs on the import of raw materials to help local manufacturers. By cutting duties on essential components, the government hopes to attract more investments and ensure the country remains competitive.
According to a report by the Financial Times, Trump may use emergency powers to impose immediate duties on imports, with his team looking into the legal mechanisms to accelerate tariff imposition.
