New Delhi, Feb. 1 -- Finance Minister Nirmala Sitharaman announced the budget for 2025-2026 on Saturday. Sitharaman has proposed several key measures to bolster the electric vehicles industry. Notably, the government has decided to remove Basic Customs Duty (BCD) on specific key minerals that affect EV batteries. Here is everything FM announced for the automobile sector.

To encourage domestic manufacturing, the government has rolled out tax incentives, which include exemption from Basic Customs Duty on minerals like cobalt powder, zinc, lead, lithium-ion battery residual and other scraps.

Further, as the government reduces the import duties on battery production minerals, it will encourage the industry leaders to offer EV batteries at l...