A new whitepaper presented on the second day of the IVCA GreenReturns Summit 2025 calls for targeted tax reforms to support the growth of India’s clean-tech battery manufacturing sector. Released jointly by the Indian Private Equity and Venture Capital Association (IVCA), law firm Trilegal, and the Bharat Climate Forum, the report highlights India’s ambitious energy goals—500 GW of renewable capacity and 30 percent electric vehicle (EV) market share by 2030—and the resulting surge in demand for energy storage solutions. Domestic battery requirements are expected to reach 127 GWh by the end of the decade, creating an estimated USD 19.5 billion opportunity if India captures just 13 percent of the global market.
The authors identify India’s reliance on imported battery cells as a major vulnerability, with 63 percent of lithium-ion imports currently sourced from China. They also note that existing customs duty and goods and services tax (GST) structures place advanced technologies such as sodium-ion cells at a disadvantage compared with established lithium-ion products. To address these issues, the whitepaper recommends unifying customs duties for all advanced battery technologies at 5 percent—matching the rate for lithium-ion cells—and lowering GST on advanced chemistry (ACC) batteries from 18 percent to 5 percent. These changes would eliminate the inverted duty structure impacting electric-vehicle batteries and distinguish modern storage chemistries from legacy lead-acid systems.
“The government has shown tremendous foresight in promoting green mobility and clean technology. The whitepaper highlights that the next step is to create greater policy synergy by aligning customs duty and reducing GST on all advanced batteries to 5 per cent. This would help lower battery costs, make EVs more affordable, and accelerate India’s clean energy transition—directly supporting the vision of a sustainable and prosperous future,” said Meyyappan Nagappan, Partner, Trilegal.
According to the report, the proposed reforms could cut battery costs by up to 20 percent, boost EV adoption, and generate 90 to 180 jobs per GWh of added production capacity.
In addition to economic benefits such as enhanced tax revenues and increased investments under the Make in India initiative, the paper underscores the strategic value of tapping into the country’s abundant sodium reserves to strengthen energy security. The recommendations aim to create a more competitive domestic industry, attract diverse capital, and support India’s shift toward a low-carbon future.
Source: BW Disrupt
