The Finance Minister has unveiled a significant proposal in Union Budget 2026 aimed at strengthening India's critical minerals processing capabilities. The announcement centers on providing Basic Customs Duty (BCD) exemption for capital goods used in the processing of critical minerals.

Key Budget Proposal

The proposed measure seeks to eliminate customs duties on capital goods specifically required for critical minerals processing operations. This exemption is expected to reduce operational costs for companies engaged in processing critical minerals, making domestic operations more competitive and cost-effective.

Strategic Impact on Critical Minerals Sector

The BCD exemption represents a targeted approach to boost India's self-reliance in critical minerals processing. By removing customs duties on essential capital equipment, the government aims to encourage investments in this strategic sector and enhance domestic processing capabilities.

This policy initiative aligns with India's broader strategy to reduce dependence on imports of processed critical minerals and build a robust domestic supply chain. The exemption on capital goods is expected to lower the initial investment burden for companies looking to establish or expand their critical minerals processing facilities in the country.

India has announced a significant policy extension in Union Budget 2026, extending existing import tax waivers on nuclear power equipment until 2035. This comprehensive announcement represents a long-term commitment to bolstering the country's nuclear energy sector and reducing operational costs for nuclear infrastructure development across all project sizes.

Extended Tax Waiver Policy

The budget announcement confirms that India will continue existing import tax waivers on nuclear power equipment with an extended timeline running until 2035. This policy extension applies universally, regardless of project size, demonstrating the government's comprehensive approach to supporting nuclear energy initiatives across the country.

Strategic Impact on Nuclear Development

The extended tax waiver policy is expected to significantly reduce the cost structure for nuclear energy implementations over the next decade. By maintaining import tax exemptions on nuclear power equipment until 2035, the government aims to accelerate nuclear infrastructure development and make nuclear energy projects more financially viable across various scales.

This comprehensive policy extension demonstrates India's strong long-term commitment to advancing nuclear energy capabilities and supporting the sector's growth through favorable fiscal policies. The continued tax waivers will facilitate easier procurement of essential equipment, streamlining the supply chain for nuclear project developers regardless of project magnitude.

Nuclear Capacity Expansion Goals

The announcement reinforces India's broader energy security objectives and nuclear capacity expansion plans. The extension of import tax waivers on nuclear power equipment until 2035, applicable to all project sizes, is expected to attract sustained investment in the sector and potentially accelerate project timelines across various nuclear facilities throughout the country.

The policy's universal application across different project scales ensures that both large-scale nuclear installations and smaller nuclear initiatives can benefit from the favorable tax treatment, supporting comprehensive nuclear energy development.