India has eliminated customs duties on waste and scrap of several critical minerals to enhance their availability for domestic manufacturing, Finance Minister Nirmala Sitharaman announced during the annual budget presentation on Saturday, as per a Reuters report. 

The exemption applies to materials such as antimony, cobalt, tungsten, and copper scrap. Additionally, customs duties have been scrapped for waste and scrap of lithium-ion batteries, as well as waste and scrap of lead, zinc, and cobalt powder.

"This move will help secure the availability of these essential materials for India's manufacturing sector," Sitharaman stated.

Alongside the duty exemptions, the government plans to introduce a policy focused on recovering critical minerals from mining tailings and by-products. This initiative aligns with India's broader strategy to strengthen its supply chain for essential raw materials.

Last year, the government removed customs duties on 25 critical minerals that are not available domestically. Additionally, in a significant step toward securing key resources, India recently approved ₹163 billion ($1.88 billion) to develop its critical minerals sector, reflecting its commitment to meeting growing industrial demand. 

Commenting on the budget, Rajesh Gupta, Founder & Director, Recyclekaro, said, "The Union Budget 2025 takes a decisive step towards strengthening India's battery recycling and manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical minerals like cobalt, lithium-ion battery scrap, lead, and zinc will enhance domestic resource availability, reduce dependency on imports, and accelerate value addition within India. This move aligns with India's vision for a circular economy, fostering investment in battery recycling and EV supply chains. The addition of new capital goods for EV and mobile battery manufacturing will further boost local production and job creation."

Masood Mallick, Managing Director & CEO, Re Sustainability Limited (ReSL), said, “The budget outlines key initiatives to support sustainability and circularity in India.The removal of custom duty on waste and scrap from critical minerals, including Antimony, Beryllium, Cobalt, and Lithium-Ion batteries, aims to boost recycling and enhance use of circular minerals in manufacturing. A policy for recovery of critical minerals from tailings or by-products of mining can also emerge as a significant enabler for India’s transition to a more circular economy."