On Tuesday, India announced the abolition of import duties on a range of goods used in the production of electric vehicle batteries and mobile phones. This decision is part of a broader initiative to adjust tariffs aimed at bolstering local manufacturers against potential retaliatory tariffs from the United States.
Finance Minister Nirmala Sitharaman emphasized the government’s objective of enhancing domestic production and improving export competitiveness through the reduction of duties on key raw materials. Her remarks preceded a parliamentary vote on the Finance Bill 2025.
The Indian government will eliminate import duties on 35 items essential for electric vehicle battery production and 28 items critical for mobile phone manufacturing, according to Sitharaman.
The move comes as India braces for the impact of impending reciprocal tariffs announced by US President Donald Trump, which are scheduled to be implemented on April 2.
Discussions between the two nations are ongoing, focusing on resolving tariff disputes and establishing a bilateral trade agreement.
Earlier on Tuesday, Reuters reported that New Delhi is considering reducing tariffs on more than half of US imports amounting to $23 billion (approximately Rs. 1,97,125 crore) as the first phase of a potential trade deal currently under negotiation, citing two government sources.
Last week, an Indian parliamentary committee urged the government to lower tariffs on raw material imports to provide greater support for domestic manufacturers.
© Thomson Reuters 2025
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