India has exempted import duties on 35 capital goods for EV batteries and 28 items for mobile phone batteries to boost domestic manufacturing and clean technology.
The move was introduced in the Union Budget 2025-26 and formalized through the Finance Bill 2025.
Batteries are the most expensive part of EVs (about 40% of the cost), and this exemption aims to reduce EV costs and make them more affordable.
Electric two-wheelers in India are growing, making up about 60% of EV sales in 2024, though EVs still only account for 2% of India’s passenger car market.
China currently dominates the global EV battery market, producing over 70% of all EV batteries, and is pushing forward with innovations like the "Super E-platform."
India wants to reduce reliance on China by building its own battery manufacturing capabilities and becoming a global alternative.
India aims to decarbonize its transport sector and integrate into both upstream (mining and refining) and downstream (manufacturing) parts of the global EV battery value chain.
This could reduce battery costs, boost technology transfer, and help India become a reliable player in the global EV ecosystem.
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