In the initial complete Budget of the Modi Government 3.0, Finance Minister Nirmala Sitharaman suggested eliminating Basic Customs Duty (BCD) on crucial minerals necessary for producing electric vehicle batteries. This action represents an important advancement in reducing the cost of electric vehicles and supports the government's objective of having 30 percent of vehicle sales as EVs by 2030, speeding up the journey toward a more sustainable future.

To strengthen local manufacturing, the Finance Minister has implemented tax incentives, which include complete exemption from Basic Customs Duty (BCD) on essential materials such as cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and twelve additional vital minerals.

Additionally, decreasing import tariffs on crucial battery manufacturing machinery seeks to reduce EV battery prices, thereby making electric vehicles more accessible. This reduction in operational costs will encourage the growth of India’s EV battery sector and improve local manufacturing abilities.

This strategic shift towards self-sufficiency not only diminishes reliance on international supply chains but also encourages the use of cleaner transport options. By fostering a vibrant local battery ecosystem, the program promotes India’s renewable energy objectives, bolsters its climate pledges, and enhances energy security via indigenous innovation.