FM Sitharaman Announces Indirect Tax Measures In Budget 2025 To Bolster Domestic Manufacturing

The Union Budget 2025 has introduced a series of indirect tax measures aimed at strengthening domestic manufacturing and enhancing value addition across key sectors.

In a significant move, Basic Customs Duty (BCD) exemptions have been extended to cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and 12 other critical minerals, facilitating raw material availability for domestic industries.

To support the textile sector, two additional types of shuttle-less looms have been added to the list of fully exempted textile machinery. Additionally, BCD exemptions on parts of open cells will further promote electronics manufacturing.

Further, the BCD exemption on raw materials, components, consumables, and parts for shipbuilding has been extended for another 10 years, ensuring continued support for the maritime sector.

These measures are aimed at the government's vision of #ViksitBharat, boosting industrial growth and global competitiveness.