TL;DR
The Indian government introduced a new policy with PLI schemes, tax benefits, and subsidies to rapidly expand domestic manufacturing of EV batteries and reduce import dependence.
The Indian government today announced a comprehensive new policy framework aimed at significantly boosting indigenous manufacturing capabilities for electric vehicle (EV) batteries. The policy, detailed by the Ministry of Heavy Industries, includes a mix of production-linked incentives (PLI) for setting up gigafactories, tax benefits for research and development in advanced cell technologies, and subsidized land allocation for large-scale battery production units. Officials stated that the initiative is crucial for reducing India's reliance on imported battery components, enhancing energy security, and positioning the country as a global hub for EV battery technology. The move is expected to attract substantial domestic and international investment into the sector, fostering innovation and creating numerous high-skilled jobs. Industry experts have largely welcomed the policy, emphasizing its potential to localize the entire EV value chain and make electric two-wheelers more affordable for consumers, thereby accelerating India's transition to sustainable mobility. The policy also outlines provisions for skill development programs to build a qualified workforce for the emerging battery manufacturing ecosystem.