India Extends Customs Duty Exemption for Capital Goods in Lithium-Ion Cell Manufacturing
The Indian government has extended the customs duty exemption on capital goods used in lithium-ion cell manufacturing, as announced in the Union Budget 2026 by Finance Minister Nirmala Sitharaman. This initiative aims to support the clean energy transition, reduce import reliance, and lower input costs for domestic manufacturers, while also promoting investments in battery energy storage systems. The measure builds on existing policies to enhance the domestic battery manufacturing ecosystem.
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The Indian government has proposed to extend the basic customs duty exemption on capital goods used for manufacturing lithium-ion cells, as announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026. This measure is intended to support India's clean energy transition and reduce reliance on imports.
The exemption will now also apply to equipment for manufacturing lithium-ion cells for battery energy storage systems (BESS). This initiative aims to lower input costs for domestic manufacturers and encourage investments in both mobility and stationary energy storage applications. It builds on previous policies, including the production-linked incentive scheme for advanced chemistry cell batteries, to foster a domestic battery manufacturing ecosystem.
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