In a move of major relief to mobile manufacturers, the Union Finance Minister, Nirmala Sitharaman, proposed to exempt 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing. This will boost domestic manufacture of lithium-ion batteries, both for mobile phones and electric vehicles.
The main goal of this calculated action, which Finance Minister Nirmala Sitharaman suggested, is to increase production of lithium-ion batteries, which are essential parts of mobile phones and electric vehicles (EVs). In addition to easing the financial strain brought on by import taxes, the exemption supports India’s larger objective of being self-sufficient in the manufacturing and technological sectors.
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Promoting investment in domestic battery manufacturing is one of the main goals of this program. The government wants to encourage both domestic and foreign manufacturers to start or grow their businesses in India by lowering the cost of importing necessary capital goods. As businesses make research and development investments, this could result in more jobs being created and technical breakthroughs.
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Customers will be able to purchase smartphones at a lower cost because to this exemption. In the end, it will improve India’s supply chain by promoting local assembly and R&D. This will increase exports, further solidifying India’s standing as a global center.
Capital goods semiconductor fabrication and processing equipment, printed circuit board (PCB) assembly equipment, high-precision testing and calibration tools, laser and optical systems for the production of microcomponents, and automated assembly lines and robotics for the production of mobile phones were anticipated to be exempt from BCD.
India’s goal to become a worldwide center for smartphone manufacture would be strengthened by this policy, which is expected to draw both domestic and foreign investments into the electronics industry.
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