Major Push For EV And Mobile Phone Battery Manufacturing Through Duty Exemptions: Budget 2025-26

(MENAFN- KNN India) New Delhi, Feb 1 (KNN) The Finance Minister announced key changes to customs duties on Saturday, aimed at strengthening domestic manufacturing in the electronics and battery sectors.

In a series of calculated moves, the government has adjusted Basic Customs Duty (BCD) rates to support local production while addressing inverted duty structures.

The minister revealed a dual approach for Interactive Flat Panel Displays (IFPD), increasing the BCD to 20 per cent from the current 10 per cent, while simultaneously reducing it to 5 per cent for Open Cell and related components.

Building on last year's reduction of BCD on Open Cell parts for LCD/LED TVs from 5 per cent to 2.5 per cent, these components will now be completely exempted from customs duty.

In a significant boost to the electric vehicle (EV) and mobile phone industries, the minister announced the addition of 63 capital goods to the exempted list - 35 for EV battery manufacturing and 28 for mobile phone battery production.

"This move will strengthen our domestic lithium-ion battery manufacturing capabilities, supporting both our mobile phone industry and the growing electric vehicle sector," the minister stated.

These changes align with the government's 'Make in India' initiative, aiming to reduce import dependence and boost domestic manufacturing capabilities in crucial technology sectors.

(KNN Bureau)

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