By
Bloomberg
Published
February 2, 2025
India will cut tariffs on a slew of products in sectors ranging from electronics to textile, in an attempt to boost local manufacturing and create jobs.
The government will remove import tariffs on critical minerals such as cobalt, zinc and lead from the current 5%, Finance Minister Nirmala Sitharaman said in her budget speech Saturday. Tariffs on machinery used in manufacturing lithium-ion battery of electric vehicles and mobile phones will also be scrapped, the minister said. The changes will be effective Feb. 2.
“These will also support domestic manufacturing and value addition, promote exports, facilitate trade and provide relief to common people,” Sitharaman said.
To enhance the competitiveness of exports in the leather and textile sectors, the minister reduced customs duty on certain products.
The reduction in levies across sectors will help Prime Minister Narendra Modi’s government to bolster local production and attract firms looking to diversify away from China. The move is also critical to deal with US President Donald Trump’s threats of universal tariffs.
