Budget 2025: The battery sector receives further support, giving the EV sector a boost

In contrast to passenger vehicles (PVs) and commercial vehicles (CVs), two-wheelers and three-wheelers are now driving the still-emerging Indian EV market.The Union government today announced the abolition of Basic Customs Duty (BCD) on new capital goods and essential minerals needed in battery manufacture, which could be a major boost to India's electric vehicle (EV) industry.The action is anticipated to lower input prices and increase domestic production of lithium-ion batteries. Since batteries account for between 35 and 40 percent of the entire cost of EVs, this could lower EV pricing.In contrast to passenger vehicles (PVs) and commercial vehicles (CVs), two-wheelers and three-wheelers are now driving the still-emerging Indian EV market.FADA Research is the source.

 "I completely exempted BCD on 25 essential minerals that are unavailable locally in the July 2024 Budget. In order to significantly boost their processing, particularly by MSMEs, I had also lowered the BCD of two other such minerals," Finance Minister Nirmala Sitharaman stated in her Union Budget 2025–2026 speech. "I now suggest that cobalt waste and powder, lithium-ion battery scrap, lead, zinc, and twelve other essential minerals be completely exempt. This would assist guarantee their availability for production in India and encourage the creation of additional jobs for our young people," she continued.