On Tuesday, India stated there would not be any import duties on several items used to produce electric vehicle batteries and mobile phones components, as part of a wider reduction of tariffs to assist local manufacturers in dealing with the anticipated impact of reciprocal US tariffs on a range of goods.
India will exempt from import duties the 35 products related to making EV batteries and the 28 items associated with mobile phone production, she stated. India has been preparing to mitigate new reciprocal tariffs proposed by US President Donald Trump and set to take place after April 2. India and the US are in discussions to resolve issues related to tariffs and a bilateral trade agreement.
Reuters reported earlier Tuesday that New Delhi was willing to agree to a 50 percent reduction in tariffs on the first phase of a trade deal involving over $23 billion in US imports, according to two government sources. Last week an Indian parliamentary committee encouraged the government to reduce tariffs associated with the importation of raw materials as a means to support local manufacturers.
"We aim to boost domestic production and enhance export competitiveness by reducing duties on raw materials," finance minister Nirmala Sitharaman said ahead of a vote to pass Finance Bill 2025 in parliament.