Tax Exemptions Boost Lithium-Ion Cell Manufacturing
Finance Minister Nirmala Sitharaman has announced a set of targeted tax and duty exemptions in the Union Budget 2026, aimed at strengthening India’s clean energy, manufacturing, and regional development agenda. The proposals focus on easing input costs for advanced battery production, renewable energy components, and cleaner transport fuels, while aligning with the broader goal of building domestic industrial capacity. Customs Duty Relief for Battery Manufacturing The Budget proposes the extension of basic customs duty exemption on capital goods used for manufacturing lithium-ion cells for battery storage. This move is intended to support domestic value addition in advanced energy storage technologies, which are critical for electric mobility and grid-scale renewable energy integration. By lowering the upfront cost of specialised machinery, the measure seeks to improve the competitiveness of Indian manufacturers and attract further investment into battery cell production. Support...