The Ministry of Finance of India has exempted from the basic customs duty an expanded list of equipment for the production of lithium-ion cells. The change was introduced by Notification No. 27/2026-Customs dated July 8, 2026, which corrects the current notification No. 25/2002-Customs: the former items 69 and 69A were replaced by a single item 69 with a consolidated list of 85 categories of capital goods.
The list covers equipment for all stages of cell production: coating machines, winding and welding systems, testing equipment, molding machines, drying systems and other specialized equipment. The base fee benefit is valid, unless otherwise agreed, until March 31, 2029.
The measure is part of India's consistent policy of localizing battery production. The notification was issued in a package of three documents on the same day: in parallel, the exemptions for components for display modules (No. 25/2026-Customs) and for details of smartphone wireless charging modules (No. 26/2026-Customs) were extended. The general logic is to reduce the cost of importing critical incoming components and equipment in order to reduce the cost of assembly within the country and increase the share of local added value.
For businesses, the effect is direct. A manufacturer importing a lithium-ion cell production line saves on import duties, which means it saves on startup capital costs. This enhances the competitiveness of the Indian assembly of batteries and cells for electric vehicles and energy storage systems compared to the import of ready-made cells.
Companies in the sector should compare their range of imported equipment with the updated list of 85 items and check whether a particular machine falls under consolidated position 69. The benefit horizon until March 2029 provides time to plan the purchase of equipment and make deliveries at a zero rate, but after this date, the regime may change, and it is more reasonable to consider the long-term economy of the project, taking into account the possible refund of the fee.
