Centre cuts import duty on parts needed to make EV batteries, phones

The Centre on Tuesday announced that they have removed import duties on parts which are needed to manufacture electric vehicle batteries and phones.

The decision was announced by the Union finance minister Nirmala Sitharaman amid broader tariff cuts to support local manufacturers to face the potential impact of reciprocal US tariffs.

"We aim to boost domestic production and enhance export competitiveness by reducing duties on raw materials," Sitharaman said ahead of a vote to pass Finance Bill 2025 in parliament.

35 items used to make EV batteries will be exempted from import duty after the announcement while 28 items required to manufacture mobile phones will not attract import duty.

The government has been preparing to reduce the impact of Trump’s reciprocal tariffs set to take effect from April 2.

Earlier, Reuters reported that the Centre was considering reducing tariffs on more than half of U.S. imports worth $23 billion in the first phase of a trade deal that the two nations are negotiating, citing two government sources.