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| Minerals |
Government Initiative Supports EV and Clean Energy Sectors
India's government has taken a major step to strengthen domestic recycling and strategic industries by removing import duties on several critical minerals. In the Union Budget for the 2025-26 fiscal year, cobalt powder, lithium-ion battery scrap, and other essential minerals have been fully exempted from basic customs duties (BCD).
Removal of Customs Duties on Critical Minerals
The Indian government has eliminated customs duties on cobalt, lead, zinc, and 12 other critical minerals, including antimony, beryllium, and copper. This exemption will lower raw material costs for the domestic recycling industry, making it more competitive. The move is expected to drive investments in new capacities, stimulating the growth of India’s mineral sector.
Government Investments to Secure Long-Term Supply
India is also prioritizing securing long-term supplies of critical minerals. The government recently approved a $1.88 billion budget for its National Critical Mineral Mission, aimed at ensuring a sustainable and strategic supply of these minerals. This effort is crucial for industries such as clean energy, defense, semiconductors, and space.
Support for Electric Vehicles and Battery Production
Beyond critical minerals, the Indian government is advancing its electric vehicle (EV) and battery manufacturing sectors. The budget proposes adding 35 capital goods for EV production and 28 for mobile phone battery manufacturing, aiming to lower production costs and make EVs more affordable. Measures have also been introduced to expand India’s EV industry by reducing operational costs for manufacturers.
However, despite these changes, no adjustments have been made to the duty structure for primary aluminum, nickel, and silicon metals, though Indian industry groups have long advocated for reductions in these areas.
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RAW MATERIAL
