India Extends Customs Duty Exemption for Capital Goods in Lithium-Ion Cell Manufacturing
The Indian government has proposed to extend the basic customs duty exemption on capital goods used for manufacturing lithium-ion cells, as announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026. This measure is intended to support India's clean energy transition and reduce reliance on imports.
The exemption will now also apply to equipment for manufacturing lithium-ion cells for battery energy storage systems (BESS). This initiative aims to lower input costs for domestic manufacturers and encourage investments in both mobility and stationary energy storage applications. It builds on previous policies, including the production-linked incentive scheme for advanced chemistry cell batteries, to foster a domestic battery manufacturing ecosystem.
