New Delhi | March 25, 2025:
In a strategic move to supercharge domestic manufacturing and attract global investments, the Government of India has announced the removal of import duties on key components used in the production of electric vehicle (EV) batteries and mobile phones.
The announcement comes as part of a broader economic roadmap to position India as a leading global manufacturing hub and to support its commitment to clean energy, digital innovation, and economic resilience.
🔋 Boost to EV Battery Manufacturing:
The government has exempted 35 critical components essential for EV battery production. This decision is expected to:
- Lower manufacturing costs for domestic EV companies
- Accelerate India’s transition to green mobility
- Support the FAME and PLI (Production Linked Incentive) schemes
- Encourage investment in local gigafactories and energy storage innovation
With India targeting net-zero carbon emissions by 2070, this move directly supports the nation’s long-term clean energy transition goals.
📱 Push for Mobile Phone Manufacturing:
In parallel, the government has also exempted 28 components used in mobile phone production, providing a fresh boost to India’s already growing electronics manufacturing ecosystem.
India is currently the second-largest mobile phone manufacturer in the world, and this move is expected to:
- Increase exports of made-in-India smartphones
- Make Indian devices more cost-competitive globally
- Attract global tech players to set up manufacturing bases in India
🌐 Economic and Trade Strategy:
This duty exemption is part of a larger tariff rationalization strategy, aimed at shielding Indian manufacturers from the anticipated impact of reciprocal tariffs imposed by the United States, set to take effect on April 2, 2025.
Both India and the US are currently in bilateral trade negotiations to resolve the issue and forge a stronger economic partnership in the technology and clean energy sectors.
💼 Expected Impact:
The policy change is expected to:
- Stimulate domestic manufacturing across core sectors
- Attract foreign direct investment (FDI)
- Create large-scale employment opportunities
- Enhance India’s standing in global supply chain networks
Industry leaders and business chambers have welcomed the decision, calling it a forward-looking reform that will unlock new growth opportunities for India’s $5 trillion economy vision.
