India Slashes Import Duties on EV Battery and Mobile Parts Amid U.S. Trade Tensions

India announced on Tuesday that it will remove import duties on several goods used in the production of electric vehicle (EV) batteries and mobile phones, as part of a broader effort to support domestic manufacturing and enhance global competitiveness. The move comes amid ongoing trade negotiations with the United States over reciprocal tariffs.

Finance Minister Nirmala Sitharaman revealed the decision ahead of a parliamentary vote on the Finance Bill 2025, stating that the measure aims to "boost domestic production and enhance export competitiveness by reducing duties on raw materials." Under the new policy, 35 items used in EV battery production and 28 items used in mobile phone manufacturing will be exempt from import duties.

The announcement follows the U.S. government's decision to implement reciprocal tariffs, set to take effect from April 2. In response, India has been preparing measures to mitigate potential impacts on its industries while continuing bilateral talks to resolve tariff disputes and work towards a trade agreement.

Earlier on Tuesday, Reuters reported that India is open to reducing tariffs on more than half of U.S. imports valued at $23 billion as part of the first phase of ongoing trade negotiations, citing two government sources.

The Indian government has been under increasing pressure to support local manufacturers, with a parliamentary committee last week recommending the reduction of import tariffs on raw materials to help domestic production.

As the two nations work towards a resolution, India’s latest policy shift signals a strategic move to strengthen its manufacturing sector, particularly in key industries like electric vehicles and mobile technology.