February 12, 2025
India is advancing rapidly towards electric mobility, with a push for innovation and manufacturing in battery production and storage
The Union Budget 2025 has removed basic customs duties on EV battery components to boost domestic manufacturing
The National Critical Minerals Mission will strengthen India’s supply chain and promote a non-lithium battery ecosystem
India’s ethanol blending rate has reached 19%, saving foreign exchange and benefiting farmers, with a 20% target set for October 2025
In a virtual address at India Energy Week 2025, Prime Minister Narendra Modi highlighted India’s rapid progress in electric mobility and renewable energy while emphasising the need for swift action to meet the demands of a large and growing nation. He stressed that the battery and storage sector presents immense opportunities for both innovation and manufacturing. To accelerate this shift, the government has removed basic customs duties on various EV battery components as part of the Union Budget 2025, aiming to strengthen domestic production and push green energy adoption.
The National Critical Minerals Mission is set to play a crucial role in establishing a robust supply chain for India’s battery sector. In addition to lithium-based solutions, the government is actively promoting the development of a non-lithium battery ecosystem to diversify and secure future energy needs.
India’s ethanol blending programme has also made significant strides, reaching a 19% blending rate, which has resulted in foreign exchange savings, increased farmer income, and reduced CO₂ emissions. The country remains ahead of schedule in achieving its 20% ethanol blending mandate, which is now expected before October 2025.
Looking ahead to 2030, India’s energy sector presents vast opportunities, including plans to add 500 gigawatts of renewable energy capacity, achieve net-zero carbon emissions for Indian Railways, and produce five million metric tonnes of green hydrogen annually. These initiatives are expected to drive major milestones in the next five years, reinforcing India’s role in the global energy transition.
The Prime Minister outlined five key pillars supporting India’s energy ambitions—resource harnessing, fostering innovation, maintaining economic strength and political stability, leveraging strategic geography for energy trade, and committing to global sustainability. He also highlighted the growth potential of India’s biofuel sector, with 500 million metric tonnes of sustainable feedstock available to further expand renewable energy initiatives.
With strategic investments and policy reforms, India is positioning itself as a global leader in clean energy, fostering innovation while ensuring energy security for the future.
Source: Economic Times