In a major boost to the domestic processing and refining of critical minerals, the Indian government has announced the waiver of customs duty on 25 important minerals, including lithium, copper, and nickel. Additionally, the import tariff on graphite has been reduced to further support the strategic sectors like renewable energy, nuclear power, and telecommunications.
Finance Minister Nirmala Sitharaman stated during her budget speech, “I propose to fully exempt customs duties on 25 critical minerals and reduce BCD on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.”
Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements are crucial components in various clean energy technologies, including wind turbines, electricity networks, and electric vehicles. India, being a net importer of critical minerals, aims to boost domestic mining and processing.
Vedanta Chairman Anil Agarwal expressed his delight at the announcement related to the Critical Minerals Mission, emphasizing the importance of exploring, mining, and processing these minerals within the domestic market. Rakesh Surana, Partner at Deloitte India, praised the government’s decision, stating that the exemption of customs duties on critical minerals will allow Indian industries to access these essential resources at competitive prices, meeting the country’s mineral requirements.
The move by the government is expected to strengthen the domestic mining and processing industry and ensure the availability of critical minerals for strategic sectors in India.
