May 04, 2021

  • Daily Motion

Government of India plans to import tax on lithium cells

lithium cells

Government of India plans to import tax on lithium cells

The Indian Government plans to import tariffs on lithium-ion cells. It plans to offer incentives to boost local manufacturing as part of the effort to reduce the trade ties with China after the conflict between India and China and the banning of 59 Chinese apps.

lithium cells

This decision is taken to boost Indian local markets and cut trade deals with China to reduce the dependency on China. Previously, Prime Minister Narendra Modi has hailed the concept of Atma Nirbhar Bharat. In that regard, the Government is planning to put tariffs on many foreign goods so that Chinese goods can be avoided.

“The Indian government has taken note of China’s dominance in this space and there are geopolitical reasons as well behind devising such an incentive scheme for lithium cells,” said one of the people who know about it.

India’s lithium-ion battery technology

The lithium cells are being used in larger proportions in rechargeable batteries for electric vehicles (EVs), laptops and mobile phones. The government plans to offer incentives such as 100% tax deduction of capital expenditure in the first year of operation under Section 35 AD, concessional financing options by giving companies deemed infrastructure status and waiver of minimum alternative tax.

India’s dependency On China Imports For EV Components

India is the third-largest automobile market it has to depend on China for EV Components as the use of components is needed for the production of EVs. India in the financial year 2018 have received the components from Chinese around $4.3 billion up to 27%. The automotive industry executives said that it seems not to slow down in the future.

India’s import numbers are much high to more than ten times from China than the export. The increasing of imports of auto components from China will risk the local auto component manufacturing ecosystem which leads to a large trade deficit with China in a couple of years.

Battery recycling market, opportunity & challenges in India-Alternate to lithium imports

The exports from Chinese includes mainly the electronic components of vehicles which are used for the manufacturing of EVs. Drive transmission, steering-electricals, interiors, and engine components are some of the things that are majorly imported from China.

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About The Author

Mastered in Journalism and I am a dedicated writer for since 2 years. I am an EV enthusiast. I love to write about electric vehicles, technology, startups, people, fashion and trends. Through my writings and shared knowledge, I aim to reduce the pollution levels from the world, especially from India.

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1 Comment

  1. Venkat Krishnan

    So happy that I could see your recent article in the ev news blog. There is such a large in-built demand for more EVs, I am thinking of starting a large scale Leasing Corp for the bigger l> 10 metre and < 10 metre electrci buses to be leased to State and Local Govt bodies. I welcome any suggestions and input re potential investors who could be interested as we move forward. For instance the FAME II proposals are still not yet in full and many State Govts are looking for Jt Investors, and may be you could direct me to their sources. I am old time CA and reside in USA with keen supporter of Green Revolution in Energy usage.

    Best wishes

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