Sun Feb 02 16:30:52 IST 2025: ## India Slashing Import Duties to Boost Domestic Manufacturing, Attract Foreign Investment

**New Delhi, [Date]** – India’s Union Budget 2025-26 unveiled significant reductions in customs duties on high-end motorcycles, luxury cars, and smartphone components. While the move coincides with past criticisms from former US President Donald Trump regarding India’s tariff policies, Finance Minister Nirmala Sitharaman insists the changes are primarily aimed at fostering “aatmanirbhar” (self-reliance) and strengthening India’s manufacturing sector.

The budget significantly lowers import duties on high-end motorcycles (up to 1600cc), benefiting companies like Harley-Davidson, which recently re-entered the Indian market through a partnership with Hero MotoCorp. Import duty on completely built-up (CBU) units has dropped to 40% from 50%, while semi-knocked down (SKD) and completely knocked down (CKD) kits will face 20% and 10% duties respectively.

Luxury car import duties have also been slashed, with tariffs on vehicles priced over $40,000 reduced from 125% to 70%. Import duties on lithium-ion batteries for electric vehicles (EVs) have been eliminated altogether, potentially attracting major EV players like Tesla, which has previously expressed interest in the Indian market.

The budget also exempted 28 items used in mobile phone battery production from customs duty, a move expected to benefit companies like Apple and reduce the cost of mobile phones in India. This aligns with India’s goal of becoming the world’s second-largest mobile phone manufacturer.

Although the timing of these duty reductions follows past criticisms from President Trump regarding India’s tariffs, Minister Sitharaman emphasized that the focus remains on domestic economic growth and attracting foreign investment to boost manufacturing capabilities. Analysts suggest that the move may also position India to capitalize on disruptions caused by the US-China trade tensions, strengthening its role in global supply chains.

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