Budget Highlights 2025

Key Takeaways for the EV & Battery Industry from Union Budget 2025

1. Strengthening Domestic Battery Manufacturing

Full exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery scrap, and 12 other critical minerals to reduce costs for domestic battery production.

Addition of 35 capital goods to the exempted list for EV battery manufacturing and 28 items for mobile home battery production.

Encouragement for local companies like Tata, Ola Electric, and Reliance to expand their operations in India.

2. Promotion of Clean-Tech Manufacturing

National Manufacturing Mission to boost domestic production of EV batteries, motors, controllers, electrolysers, and grid-scale batteries.

Policy support, execution roadmaps, and collaboration with central and state governments for scaling up operations.

Emphasis on reducing dependency on imports and strengthening India’s role in the global clean energy supply chain.

3. Boosting EV Affordability & Adoption

Lower battery production costs due to tax exemptions, making EVs more affordable.

Incentives for backward integration to enhance local supply chains and reduce reliance on China and other countries.

Support for grid-scale batteries to ensure efficient energy storage, improving EV charging infrastructure.

4. PLI Scheme Expansion for Large-Scale Manufacturing

Production-Linked Incentive (PLI) scheme now includes 16 sectors, with a 38% allocation for electronics manufacturing, indirectly benefiting battery production.

FY25 allocation raised by 89% to ₹16,092 crore, ensuring sustained investments in EV and clean energy sectors.

5. Alignment with India’s Renewable Energy Goals

Focus on solar PV cells, wind turbines, and high-voltage transmission equipment, complementing EV battery manufacturing.

Incentives to enhance local production capacity, fostering a robust ecosystem for sustainable energy solutions.

6. Social Security Scheme for Gig Workers

Introduction of social security scheme for online platform workers, ensuring formal recognition and access to essential benefits.

Issuance of identity cards and registration on the e-Shram portal for gig workers.

Healthcare coverage under PM Jan Arogya Yojana.

Direct benefits expected to reach nearly one crore gig workers.

Part of a broader strategy to invest in the economy and support a dynamic, inclusive workforce.

These measures will accelerate India’s transition to clean mobility, strengthen its EV battery supply chain, and attract global investments into the electric vehicle and renewable energy sectors.