Indian Finance Minister proposes to lower tariffs on solar cells and modules

Recently, in the 2025-2026 federal budget speech, Treasury Secretary Nirmala Sitharaman proposed revising tariffs on solar cells and modules (tariff code 8541).

(Source: WeChat official account "Photovoltaic Information Office")

The tariff on solar cells will be reduced from 25% to 20%, plus a 7.5% Agricultural Infrastructure and Development Tax (AIDC) and a 2.5% Social Welfare Surcharge (SWS).

The tariff on solar modules will be reduced from 40% to 20%, plus 20% AIDC and 4% SWS. The reduction of tariffs is expected to promote the development of India's clean technology manufacturing and solar energy industries.

National Manufacturing Mission:

The 'National Manufacturing Mission' will cover large, medium, and small industries. It will provide policy support, roadmap, and governance framework for the 'Made in India' initiative, driving its further development.

The focus of this mission is on clean technology manufacturing, including fields such as solar photovoltaic cells, electric vehicle batteries, motors and controllers, electrolytic cells, wind turbines, high-voltage transmission equipment, and grid scale batteries. This is highly consistent with the Indian government's commitment to climate friendly development.

Exemption from tariffs on key minerals

In order to support the domestic manufacturing industry, the Minister of Finance announced the complete exemption of tariffs on 12 key minerals. These minerals include cobalt powder and waste, lithium-ion battery waste, lead, zinc, etc.

It is worth noting that tariff exemptions have been implemented for 25 key minerals in the July 2024 budget. This measure aims to ensure stable supply of key materials for India's manufacturing industry, create employment opportunities, especially for young people, and enhance the processing capabilities of small and medium-sized enterprises.

Support the development of lithium-ion battery industry

In order to strengthen the lithium-ion battery industry, the Minister of Finance proposes to include 35 types of capital goods used for electric vehicle battery manufacturing and 28 types of capital goods used for mobile phone battery manufacturing in the tax-free capital goods list. This measure will strongly support the domestic production of lithium-ion batteries for electric vehicles and mobile phones in India.