Budget 2025: Customs duty exemption on lithium-ion battery scrap announced by FM Sitharaman

In a significant move to boost India's manufacturing capabilities, Finance Minister Nirmala Sitharaman announced a customs duty exemption on lithium-ion battery scrap during her Union Budget 2025 speech. This exemption is part of a broader initiative to support the electric vehicle (EV) and battery sectors by reducing costs and encouraging domestic production.

“In a significant move to boost India's manufacturing capabilities, Finance Minister Nirmala Sitharaman announced a customs duty exemption on lithium-ion battery scrap during her Union Budget 2025 speech. This exemption is part of a broader initiative to support the electric vehicle (EV) and battery sectors by reducing costs and encouraging domestic production,” said Sitharaman in her speech.

The exemption on lithium-ion battery scrap is expected to provide a substantial boost to the recycling and manufacturing industries, making it more cost-effective to produce batteries within India. This move aligns with the government's vision of promoting sustainable and eco-friendly technologies.

The announcement has already had a positive impact on the stock market, with shares of battery manufacturers like Exide and Amara Raja seeing significant gains following the news. This policy change is expected to drive further investments in the EV and battery sectors, contributing to India's goal of becoming a global leader in sustainable technology.

The customs duty exemption is part of a series of measures introduced in the Union Budget 2025 to stimulate economic growth and support key industries.