India Removes Import Duty on EV Battery & Phone Components Amid U.S. Trade Tensions
Techlist Staff
Posted On March 25, 2025
India has announced a major policy shift by removing import duties on key raw materials used in electric vehicle (EV) battery and mobile phone manufacturing. The decision comes as part of a broader effort to strengthen domestic production and cushion the impact of upcoming U.S. tariffs.
Boosting Local Manufacturing & Exports
Speaking ahead of the Finance Bill 2025 vote in parliament, Finance Minister Nirmala Sitharaman emphasized the government’s commitment to enhancing local manufacturing competitiveness.
“We aim to boost domestic production and enhance export competitiveness by reducing duties on raw materials,” Sitharaman stated.
Under the new policy, India will exempt 35 critical components used in EV battery production and 28 raw materials required for mobile phone manufacturing from import duties.
Response to U.S. Tariff Pressures
This move is widely seen as a countermeasure to the U.S.’s new reciprocal tariffs, set to take effect on April 2, 2025, under President Donald Trump’s administration. India has been engaged in trade discussions with the U.S. to resolve tariff disputes and establish a balanced bilateral trade pact.
Earlier reports by Reuters revealed that India is considering lowering tariffs on over half of U.S. imports—worth approximately $23 billion—as part of a phased trade deal.
A Step Toward Economic Growth
Last week, an Indian parliamentary committee recommended reducing import tariffs on raw materials to support local manufacturers. By eliminating duties on essential components, the government aims to attract more investments, foster innovation, and ensure India remains a competitive global manufacturing hub.
What’s Next?
With trade negotiations ongoing, industry experts are closely watching how this decision impacts India’s tech and EV sectors. The exemption of these duties could lead to lower production costs, potentially benefiting consumers with more affordable EVs and smartphones in the future.
Stay tuned to Techlist for more updates on this developing trade story.
