In a significant move aimed at boosting key sectors, Finance Minister Nirmala Sitharaman announced the removal of import duties on 25 critical minerals, including lithium-ion battery scrap, cobalt products, LED components, zinc, and 36 drugs used in the treatment of cancer and rare diseases. This initiative is expected to support India’s manufacturing capabilities, ease the import process, and improve accessibility to essential medicines.
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Boosting Critical Minerals and Battery Manufacturing
Sitharaman emphasized that the removal of customs duties on critical minerals will enhance the processing and refining of these minerals, which are vital for several strategic industries. She also proposed a reduction in the Basic Customs Duty (BCD) on two of these minerals.
The government’s focus on expanding lithium-ion battery manufacturing is evident, with proposals to exempt customs duties on cobalt power, lithium-ion battery waste, and lead. Additionally, she announced a proposal to promote the manufacturing of both mobile and electric vehicle (EV) batteries by adding 35 new capital goods for EV battery production and 28 for mobile phone battery production.
Also Read: Union Budget: No Income Tax on Annual Income Up to Rs 12 Lakh, See Revised Tax Slab
Supporting Health Care with Duty Exemptions on Life-Saving Drugs
In her budget speech, Sitharaman also proposed to fully exempt Basic Customs Duty (BCD) on 36 life-saving drugs used for cancer and rare diseases, providing much-needed relief to patients. Furthermore, six life-saving medicines will be added to a list of drugs attracting concessional customs duty of 5%.
These measures align with the government’s commitment to enhancing healthcare access for the public, particularly for individuals suffering from chronic and life-threatening conditions.
Continuing Support for Shipbuilding Industry
To further bolster the shipbuilding industry, the finance minister proposed to continue the exemption of BCD on raw materials, components, and parts used for ship manufacturing for another decade. This will also apply to shipbreaking activities, which will make the sector more competitive in the global market.
Other Key Proposals
In line with the “Make in India” policy, Sitharaman proposed changes to the inverted duty structure. The BCD on interactive flat-panel displays will rise from 10% to 20%, while the BCD on open-cell displays and other components will be reduced to 5%.
These steps are designed to promote the domestic manufacturing sector, create employment opportunities, and improve India’s competitiveness in global markets. Additionally, the proposal to exempt BCD on wet blue leather will facilitate imports and foster domestic value addition in the leather industry.
The overall budget aims to create a more robust, self-sustaining economy while also addressing public health needs and encouraging industrial growth.
