India Cuts Tariffs on Capital Goods and Raw Materials to Boost Local Manufacturing and Exports
India has reduced tariffs on various capital goods and raw materials to bolster local manufacturing and support exporters impacted by U.S. trade policies. The cuts, announced by Finance Minister Nirmala Sitharaman, focus on essential items for critical mineral processing, lithium-ion battery production, and other industries facing challenges from tariffs. These measures aim to realign India's trade policy with evolving global dynamics.
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India has reduced tariffs on various capital goods and raw materials to decrease reliance on China and help exporters affected by U.S. trade policies. Finance Minister Nirmala Sitharaman announced cuts on duties for capital goods necessary for processing critical minerals and producing lithium-ion battery cells.
The budget also eliminated tariffs on sodium antimonate for solar glass and monazite for rare earth magnets used in electric vehicles. These changes aim to support local industries, including marine, leather, and textiles, which face challenges from U.S. tariffs.
Additional cuts were made on raw materials for aircraft maintenance in the defense sector and electronics. Analysts view these tariff reductions as a strategy to align India's trade policy with new global trade dynamics.
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