NEW DELHI: Finance Minister Nirmala Sitharaman on Sunday announced major reductions and exemptions in customs duties across several sectors, including electronics, critical minerals, renewable energy, nuclear power, defence, civil aviation and healthcare.
Critical minerals, which are vital for technology and industrial use, were a key focus in the Budget. The basic customs duty on monazite, a rare mineral used in advanced manufacturing and nuclear applications, has been reduced from 2.5% to zero.
The Finance Minister said a Scheme for Rare Earth Permanent Magnets had been launched in November 2025. The government will now support mineral-rich states — Odisha, Kerala, Andhra Pradesh and Tamil Nadu in setting up dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing.
To boost renewable energy, the customs duty on sodium antimonate, used in solar glass manufacturing, has been reduced from 7.5% to zero. Capital goods used for manufacturing lithium-ion cells for energy storage batteries have also been fully exempted from customs duty.
In the nuclear energy sector, customs duty on all goods used for nuclear power generation has been reduced to zero. This includes control rods and burnable absorber rods. In addition, goods imported for specified nuclear projects registered by September 30, 2035, will attract no customs duty.
“I propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries to those used for manufacturing lithium-ion cells for battery energy storage systems as well,” Sitharaman said.
In the electronics sector, goods used in the manufacture of microwave ovens will now attract zero customs duty. In civil aviation and defence, components, parts and engines for aircraft, as well as raw materials used by defence public sector undertakings for aircraft maintenance, repair and overhaul, have been exempted from duty.
In healthcare, 17 new drugs and medicines listed under Notification 45/2025 have been exempted from customs duty. Medicines and food required for the treatment of seven rare diseases for personal medical use have also been made duty-free.
For individual travellers and personal imports, the Finance Minister announced a simpler duty structure. From April 1, 2026, all goods imported for personal use will attract a uniform customs duty of 10%, replacing the existing rates of 10% to 20%.