The budgetary proposal to slash taxes on the import of minerals critical to manufacturing EVs is set to give fresh impetus to the EV market by lowering costs
The Union Budget has ignited hope in the electric vehicle industry with its proposal to ease taxes on the import of crucial minerals for battery production. This strategic move is set to reduce manufacturing costs and position India as a frontrunner in the global electric vehicle and battery technology landscape.
The budget’s emphasis on expanding the availability of key minerals like lithium and cobalt is poised to significantly lower EV production costs. This move makes electric vehicles more affordable, sparking hope and excitement about the potential for their widespread adoption across the nation.
In addition to its focus on the EV sector, the budget highlights a strong commitment to clean energy through the introduction of the PM Surya GharMuft Yojana. This scheme, providing rooftop solar panels and up to 300 kWh of free electricity to 10 million households, reassures the public of the government’s support for clean energy and environmental goals.
The proposal also alludes to advancements in ultra-supercritical thermal power plants and critical mineral recycling, which are expected to bolster India’s green infrastructure.
The budget also addresses workforce development by promoting women’s participation and youth skilling, aimed at enhancing employability and supporting the gig economy. However, there was some disappointment over the absence of updates on the FAME-III policy and specific incentives for the EV sector, highlighting the need for consistent policy support.