3 min readNew DelhiUpdated: Feb 1, 2026 05:31 PM IST The Union Budget 2026-27 has exempted basic customs duty on the import of capital goods required for the processing of critical minerals. The move is expected to boost the country’s critical mineral processing capacity, which is currently in early stages. Processing is considered as one of the key bottlenecks in India’s critical mineral ecosystem as India depends heavily on imports of refined minerals and components. Notably, China controls 90% of global critical mineral processing and has imposed curbs on several critical and heavy rare earth minerals amid trade tensions with the US. While Beijing has eased some controls after discussions between US President Donald Trump and Chinese President Xi Jinping, the prolonged restrictions have already pushed countries — including India — to diversify supplies. Rajib Maitra, Partner, Deloitte India, said that the proposed basic customs duty exemption on capital goods for critical minerals processing will enhance the viability of projects and encourage investments in domestic processing. It provides the necessary fiscal incentives and regulatory clarity …