Customs Duty Exemption on Lithium Batteries Seen as Catalyst for India’s EV Infrastructure Expansion – EQ
In Short : Industry stakeholders believe that customs duty exemption on lithium batteries will significantly support the creation of electric vehicle infrastructure in India. By reducing input costs, the policy is expected to accelerate EV adoption, improve affordability, strengthen charging networks, and stimulate domestic manufacturing, ultimately supporting India’s transition toward clean mobility and a sustainable transportation ecosystem.
In Detail : The government’s decision to provide customs duty exemption on lithium batteries has been welcomed by industry as a major step toward accelerating the development of electric vehicle infrastructure in India. This policy move is seen as a strategic intervention to lower costs and remove barriers that have slowed the pace of EV adoption.
Lithium batteries are the most critical and expensive component of electric vehicles and energy storage systems. High import duties have traditionally increased the cost of EVs, making them less accessible for consumers and challenging for manufacturers to scale production efficiently.
With the exemption in place, industry leaders expect a reduction in the overall cost of batteries, which could directly translate into more affordable electric vehicles. Lower prices are likely to encourage wider consumer adoption and increase market penetration across both personal and commercial mobility segments.
The policy is also expected to benefit the development of charging and battery swapping infrastructure. As battery costs decline, investments in charging stations, fleet electrification, and energy storage systems become more economically viable for private players and public agencies.
From a manufacturing perspective, the exemption provides relief to companies dependent on imported battery cells and components. This helps stabilise supply chains, reduce production costs, and improve competitiveness of Indian EV manufacturers in domestic and global markets.
At the same time, industry experts view the exemption as a transitional measure that complements long-term efforts to build domestic battery manufacturing capacity. While imports may support immediate growth, parallel investments in local gigafactories and research facilities remain essential.
The move also aligns with India’s broader clean mobility and climate goals. By promoting electric vehicles, the policy contributes to reducing urban air pollution, lowering greenhouse gas emissions, and decreasing dependence on fossil fuel imports.
Economically, the exemption is expected to stimulate investment across the EV value chain, including vehicle manufacturing, component supply, charging infrastructure, and digital mobility platforms. This can generate employment opportunities and foster innovation in sustainable transport solutions.
Overall, industry believes that customs duty exemption on lithium batteries will act as a catalyst for EV infrastructure creation. It represents a pragmatic policy step that balances immediate market needs with long-term ambitions for a self-reliant, clean, and future-ready mobility ecosystem.
