Sun Feb 01 08:07:58 UTC 2026: ### Lithium-Ion Battery Production Gets Continued Boost: Tax Exemption Extended
The Story:
Finance Minister Nirmala Sitharaman announced on Sunday, as part of the annual budget for the next financial year, an extension of the basic customs duty exemption on capital goods used for manufacturing lithium-ion cells for battery storage. This move signals the government’s continued commitment to fostering domestic battery production, a crucial component for electric vehicles and renewable energy storage.
Key Points:
- Basic customs duty exemption extended.
- Applies to capital goods used for manufacturing lithium-ion cells.
- Targeted towards battery storage.
- Announced as part of the annual budget.
Key Takeaways:
- The government is actively incentivizing the domestic manufacturing of lithium-ion batteries.
- This policy supports the growth of the electric vehicle sector and renewable energy storage solutions.
- Continued tax exemptions suggest a long-term strategy to reduce reliance on imported batteries and establish a strong domestic battery industry.
First Piper 