25 March 2025, India Exempt Import Duties, India has eliminated import duties on different components essential for EV batteries and mobile phones in order to reduce dependency on imports. This strategic move is taken to boost the local production and enhance export competitiveness.
Which components are exempted?
Electric Vehicle Batteries
The government has exempted 35 items essential for making EV batteries. This initiative improves the domestic production and reduce the cost in production thereby promoting the adoption of EVs in the country.
Mobile Phone Components
Under India Exempt Import Duties, 28 items essential for mobile phone manufacturing are now removed from import duties, including battery covers, main camera lens etc. Previously, these components attracted duties ranging from 2.5% to 15%. This will impact on Indian manufacturing to build more competitive globally.
What is primary objective to remove these duties?
- Government aim to increase the demand of products by making attractive for both domestic and international companies. This will strengthen the India’s manufacturing sector.
- Lower the production, lower the cost will become competitive to international market and potentially increasing India’s share in global exports of mobile phones and EV components.
- Encouraging local production will reduce the dependencies on imports, aligning with the government’s vision of a self-reliant India.
- The goal is to lessen the bad effect on Indian exports which recently hit by Global Trade Dynamics led to India Exempt Import Duties.
Impact on Manufacturing Companies
Recently Apple has aiming to expanding its manufacturing and set footprint in India. Xiaomi also leading to increase production and export volumes. Both companies are expected to support their local assembly operations.
Brands like Motorola, Samsung, Xiaomi has contract player Dixon technologies which seems to poised a gain from this cost reduction of materials, enhancing it competition in the price for other manufacturing sectors after initiative of India Exempt Import Duties.
Exicom Tele-Systems specializing in EV chargers and lithium-ion batteries, now exemption on duties will reduce the production cost aiding in their goal to have the EV charger business contribute 50% of their annual revenue by 2030.
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Outlook of industry reaction
Ashwini Vaishnaw, Union Minister of Electronics and Information Technology emphasizing that this exemption of import duties is much needed for the industry clarity and enhancing the strong ecosystem for manufacturing in the country.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA) highlighted low input tariff and building scale are key to transforming India into global hub for manufacturing and exporting of electronics.
Conclusion
The recent development by the government of India Exempt Import Duties materials from foreign sources will benefit the manufacturing sector to step forward and build EV batteries and mobile phone components with lower cost, it will impact on price in the global market increase competitors and lessen the bad effect on Indian exports which recently hit by Global Trade Dynamics.
