Nirmala Sitharaman Exempts Customs Duty on Key Critical Minerals in Union Budget 2025-26

New Delhi, Feb 1 (KNN) In her 8th consecutive budget presentation for the 2025-26 fiscal year, Finance Minister Nirmala Sitharaman announced further steps to strengthen India’s mineral processing sector.

Building on measures taken in the July 2024 Budget, where she had already exempted Basic Customs Duty (BCD) on 25 critical minerals, the Finance Minister unveiled new exemptions for key materials that are not readily available domestically.

Sitharaman proposed to fully exempt BCD on cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 other essential minerals.

These exemptions are aimed at boosting the availability of these minerals, which are crucial for India’s manufacturing sector, particularly in industries such as electric vehicle (EV) production and renewable energy.

The move is expected to support the growth of MSMEs (Micro, Small, and Medium Enterprises), helping them scale their operations in the mineral processing sector.

Additionally, it is anticipated that the policy will create more job opportunities for India's youth, further contributing to the country’s economic development and self-reliance in the manufacturing space.

With these initiatives, the government continues to push forward with its strategy to enhance domestic manufacturing capabilities and reduce dependence on imported minerals.

(KNN Bureau)