Import duties on EV battery, mobile components waived to boost manufacturing

India on Tuesday announced no import taxes on a several products used in the production of electric vehicle batteries and mobile phones as part of wider tariff reductions to assist local manufacturers from withstanding the threat of reciprocal US tariffs.

"We aim to boost domestic production and enhance export competitiveness by reducing duties on raw materials," finance minister Nirmala Sitharaman said ahead of a vote to pass Finance Bill 2025 in parliament.

India will exempt from import duty on 35 components for EV battery production and 28 items utilized in mobile phone manufacturing, she noted.

India has been taking steps to mitigate the effects of US President Donald Trump's reciprocal tariffs scheduled to begin on April 2.

The two nations are in discussions to address tariff concerns and establish a bilateral trade agreement.

On Tuesday, Reuters mentioned that New Delhi was willing to reduce tariffs on over half of U.S. imports valued at $23 billion as part of the initial stage of a trade agreement that the two nations are negotiating, citing two government sources.

Last week, a parliamentary committee in India suggested that the government reduce tariffs on imported raw materials to aid domestic manufacturers.