Union Budget 2024 | Exemption of customs duty on critical mineral is a step in the right direction, says Rakesh Surana of Deloitte India

Finance Minister announced a cut in customs duty on minerals such as lithium, copper and cobalt, which are critical for nuclear energy, renewable and other sectors, to give a fillip to the energy transition.

Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2024, highlighting the Modi govt 3.0’s priorities across multiple sectors.

While presenting the Budget, she announced a cut in customs duty on minerals such as lithium, copper and cobalt, which are critical for nuclear energy, renewable and other sectors, to give a fillip to the energy transition.

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Here’s how industry stakeholders reacted:

"The announcement made during the Union Budget 2024 regarding the Critical Mineral Mission is a step in the right direction. Securing critical minerals, which includes not just the resources but also the processing technology, is crucial to ensuring India's energy security and supporting India's energy transition goals. This mission will help secure our medium- to long-term objectives in terms of securing critical minerals and access to technology, making the country more self-sufficient and supporting our energy transition objectives. It is heartening to see the government's relentless focus on this issue," Rakesh Surana, Partner, Deloitte India said.

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He also added, "This mission will facilitate Indian companies' participation in meeting the growing needs of India's critical minerals sector and spur interest in investment and capacity building. This mission will help accelerate technology tie-ups and joint venture partnerships, which are essential for developing the processing part of the critical minerals value chain, the majority of which today sits in China. Additionally, much-needed financing and programs to bring in skilled resources will be critically needed to accelerate the growth of the critical minerals industry in India, making this mission strategically important for growing India's self-reliance on critical minerals."

The full exemption of customs duties on 25 critical minerals and the reduction of BCD on two of them is a positive step in the short term, Rakesh Surana said.

This will allow Indian industries to access these minerals at competitive prices, thereby meeting our current mineral requirements, he added.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.