Finance Minister Nirmala Sitharaman has rolled off import duties on EV battery components, reducing them to zero. The withdrawal comes with the United States’ escalated trade pressure and threatening tariffs on key Indian exports.
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What resulted in the waiver?
On facing criticism from opposition parties, she explained the waiver is not linked to pressure from the U.S. or the ongoing global trade tensions.
In her reply to the debate on Finance Bill 2025 in Rajya Sabha, the Minister said the decision was part of a long-standing plan to ease compliance and align with evolving global tax norms.
Sitharaman said, “Consistently, budget after budget, we are coming up with a reduction in duties so that India's aspiration for being a manufacturing hub and India's aspiration in building capacities for battery manufacturing and advanced chemistry is being supported. So, this is a consistent thing.”
"I heard quite a few members say, Oh, the tariff war has started, so in response to the tariff announcements made by President Trump, here we are doing it. No, we have been doing it since 2023, steadily, every year. Newer items are being brought in, keeping in mind Atmanirbhar Bharat and, at the same time, Viksit Bharat's requirements, as well as simplifying the customs duty and compliance details," she added.
President Donald Trump declared a 25 per cent tariff on all imported vehicles entering the United States, saying it is "very exciting" for domestic manufacturing.
The US tariffs, scheduled to take effect on April 2, would impact nearly half of all vehicles sold in their country, including American brands assembled overseas.
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