The need for strengthening India’s EV supply chains
India's electric vehicle sector is growing rapidly, but the industry faces a strategic vulnerability due to heavy reliance on imported lithium-ion batteries. The report argues for a shift in policy to prioritize domestic manufacturing and supply chain resilience.
Why it matters
It addresses the critical economic and geopolitical challenge of scaling green energy infrastructure in India.
India’s electrification of road transport has entered a decisive growth phase. Around 2.5 million vehicles were sold in FY26, a significant increase from FY25. This momentum reflects the effectiveness of policy support from both the Centre and the States, including upfront purchase incentives, road tax exemptions, registration charge waivers, and other demand-side interventions. These measures helped create the initial market, reduce consumer hesitation, and establish electric vehicles (EVs) as a credible and tested technology.
The article provides a balanced economic analysis of industrial policy and supply chain risks.
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