India needs to accelerate domestic production of batteries, manufacturing equipment and advanced Electric Vehicle (EV) technologies to avoid remaining at the lower end of the global EV value chain, NITI Aayog said in its latest report.
The observation is part of ‘Trade Watch Quarterly’ for the first quarter of FY 2025–26, released by NITI Aayog.
“India needs to enhance export competitiveness by rationalising incentives and correcting cost distortions, expanding export-linked financing for emerging markets, reducing inland and port logistics costs, and accelerating domestic production of critical inputs such as EV batteries,” the report said.
According to the government think tank, India’s reliance on imported battery manufacturing equipment and advanced technologies affects its trade competitiveness and long-term positioning in the global EV market. In the absence of domestic capabilities in high-precision machinery and next-generation battery technologies, India’s EV exports remain concentrated in assembled vehicles, while high-value components continue to be imported.
“This structural gap limits India’s ability to scale exports of high-value battery cells, packs and power electronics, especially as global leaders consolidate their dominance through tight technology control and vertically integrated supply chains,” the report noted.
The report said that as global markets move towards advanced battery chemistries and stricter quality standards, India would need to strengthen domestic manufacturing equipment capabilities, testing infrastructure and process innovation. It called for targeted foreign direct investment, technology partnerships and dedicated equipment-testing centres to reduce import dependence and support movement up the EV value chain.
According to the report, global EV imports rose nearly 30-fold between 2020 and 2024, while India’s share remained at around 0.1 percent of both global EV exports and imports.
World EV imports increased from $4.6 billion in 2020 to nearly $150 billion in 2024. Over the same period, India’s EV exports rose from $1.2 million to $84 million, while imports reached $211 million in 2024, resulting in a trade deficit of $170.5 million.
India’s EV exports largely comprise small and affordable vehicles, with Nepal accounting for 46.4 percent of shipments in 2024. Other markets, including Indonesia and Japan, have also emerged, though export volumes remain modest, the report said.
