India’s battery market is poised for substantial growth, with projections indicating an increase from USD 16.77 billion in 2023 to USD 27.70 billion by 2028, representing a CAGR of 10.56% during the forecast period.

The COVID-19 pandemic, which emerged in the first quarter of 2020, had a notable impact on the battery market’s growth in India. Government-imposed lockdown measures disrupted major shipping routes for lithium-ion and lead-acid battery manufacturing units, negatively affecting the industry. Despite these challenges, the market is expected to flourish due to the rise of new and promising sectors, particularly electric vehicles (EVs) and battery energy storage systems for various applications. However, the absence of domestic lithium-ion manufacturing facilities might limit the market’s potential.

The automotive segment is anticipated to experience significant growth in the Indian battery market throughout the forecast period, primarily driven by the increasing adoption of electric vehicles across the country. As the demand for EVs rises, the need for efficient and reliable batteries becomes paramount.

To address the challenges posed by import duties and reduce dependency on foreign markets, there are plans for local manufacturing of lithium-ion batteries in India. This initiative holds the promise of bringing down the cost of EVs over time, making them more accessible to the masses. Additionally, domestic production would enhance self-sufficiency in the battery market, positioning India as a formidable player in the industry.

The establishment of lithium-ion battery manufacturing facilities in India would not only stimulate the growth of the EV sector but also create employment opportunities and contribute to the country’s economic development. By reducing import reliance, India can foster a self-sustaining battery ecosystem that fuels innovation and technological advancements.

While the absence of domestic lithium-ion manufacturing facilities presents a current challenge, the future prospects for the battery market in India remain bright. The growing adoption of electric vehicles, coupled with plans for local manufacturing, will likely shape a dynamic and thriving industry landscape. As the government continues to prioritize sustainability and clean energy, the battery market will play a crucial role in realizing India’s vision for a greener and more sustainable future.