India Removes Import Duties on Critical Minerals to Boost Domestic Industry

India Minerals

India's government has taken a significant step to boost the domestic recycling industry and support the country’s strategic industries by removing import duties on several critical minerals. In the Union Budget for the 2025-26 fiscal year, India has fully exempted cobalt powder, lithium-ion battery scrap, and other essential minerals from basic customs duties (BCD).

Removal of Customs Duties on Critical Minerals

The Indian government has removed customs duties on cobalt, lead, zinc, and 12 other critical minerals, including antimony, beryllium, and copper. This exemption will lower raw material costs for the domestic recycling industry, making it more competitive. As a result, this move is expected to drive investments in new capacities, stimulating the growth of India’s mineral sector.

Government Investments to Secure Long-Term Supply

India is also focusing on securing long-term supplies of critical minerals. The government recently approved a $1.88 billion budget for its National Critical Mineral Mission, aimed at ensuring a sustainable and strategic supply of these minerals. This is part of the government's ongoing effort to bolster the domestic mineral supply chain, which is vital for key industries like clean energy, defense, semiconductors, and space.

Support for Electric Vehicles and Battery Production

In addition to critical minerals, the Indian government is also taking steps to support the electric vehicle (EV) and battery manufacturing sectors. The budget proposes adding 35 capital goods for EV production and 28 for mobile phone battery manufacturing, aiming to reduce production costs and make EVs more affordable. The government also introduced measures to encourage the expansion of India’s EV industry by lowering operational costs for manufacturers.

However, despite these changes, no adjustments have been made to the duty structure for primary aluminum, nickel, and silicon metals, though the Indian industry has long advocated for reductions in these areas.