Budget 2024: FM Nirmala Sitharaman announces reduction in basic customs duty on steel and copper

To boost strategic sectors and reduce import dependence, Finance Minister Nirmala Sitharaman announced on Tuesday a complete customs duty exemption on 25 critical minerals in the Union Budget 2024-25 presented. The exemption covers essential materials such as nickel and blister copper to reduce the production cost of steel and copper.

The finance minister also proposed a concessional basic customs duty (BCD) of 2.5% on copper scrap.

Announcing the wavier, the finance minister said, “steel and copper are important raw materials. To reduce their cost of production, I propose to remove the BCD on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5% on copper scrap.

Referring to other metals, the finance minister proposed to reduce customs duties on gold and silver to 6% and on platinum to 6.4% to enhance value addition in precious metal jewellery.

"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent," Sitharaman said.

The minister said minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics. Hence, she proposed to fully exempt customs duties on 25 critical minerals and reduce BCD on two of them to provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.

In the beginning of her budget speech, the finance minister said that the people of country have reposed their faith in Modi government and re-elected it for a historic third term under the leadership of Prime Minister Narendra Modi.

"We are grateful for their support, faith and trust in our policies. We are determined to ensure that all Indians, regardless of religion, caste, gender and age, make substantial progress in realising their life goals and aspirations," she said.