- 24 Jul 2024
- ICICI Securities
EXEMPTING CUSTOM DUTIES ON KEY RAW MATERIALS
News: In Union Budget 2024-25, the government has proposed fully exempt custom duties on 25 critical minerals, including lithium, copper, cobalt and rare earth elements. It also proposed reducing basic customs duty on two such minerals. Government has also proposed reducing basic custom duty on graphite from 7.5%/5% to 2.5%
Views: Given these raw materials are largely been imported from the other countries due to availability issues in the domestic market. This will ease the cost structure and benefits for the non-ferrous companies such as Hindalco and Vedanta. This development is also positive for end user segment like Li-On Battery players like Exide Industries. Reduction in import duty on graphite will mainly benefit the domestic graphite electrodes producers such as HEG and Graphite India, given ~70% of graphite is imported in India.
Impact: Positive