Buying a car is the dream of a middle class, which they are trying to fulfill in trying to fulfill. They keep working hard In the year 2024, more than 43 lakh cars were sold in the country. In the midst of increasing challenges of Parivaravan, the demand for electronic vehicles has increased in the country for the last few years. The government is also working from time to time to promote the EV car. Finance Minister Nirmala Sitharaman made a big announcement on Tuesday 25 March, saying that the Government of India will not impose any import duty on 35 such capital goods, which are used in the production of EV battery used for electric vehicles.
Government wants to increase the production of EV batteries in India
In the Parliament, the Finance Minister, while presenting the Finance Bill 2025, said that the government is reducing import duty on raw materials to promote domestic manufacturing and strengthen export capacity. Describing the motive behind taking this step, the Finance Minister said that the government wants the production of EV batteries in India and the country should become self -sufficient.
In today’s time, India imports 35 such capital goods, which are used in the manufacture of electric vehicle batteries. Removing import duty will help Indian companies in production and increase the availability of electric vehicles in the country.
Government has removed import duty on EV batteries
It is worth noting that in a recent meeting of the Parliamentary Committee, it was suggested that import duty on raw materials should be reduced to encourage domestic manufacturing and now the government has completely removed the import duty on EV batteries and mobile batteries.
Consumers will get direct benefit of this, because this can reduce the price of electric cars and at the same time the electric vehicle industry will also get boost from this decision.
Since Trump became the US President, the US has announced a recipe -crocodile tariff on several countries since 2 April 2025. Taking the name of India several times, Trump himself said that India is very tax on American products, although he has not announced any reciperook tariff on India till now.
Thoughts on reducing import duty on things coming from America
According to a report by Reuters, the Government of India will negotiate reduction of tariffs in the first phase of trade agreement with the US. The government is considering the option of reducing import duty on Rs 1.9 lakh crore to be imported from the US i.e. 23 billion dollars, so that the trade between the two countries remains balanced.
After this decision of the government to remove import duty on EV batteries, the major car companies will soon start to carry out their business by launching a family electric car cheaply in different segments.
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