Loading...
India is preparing to take a significant step towards building a stronger and more self-reliant electric vehicle (EV) supply chain with a proposed incentive scheme worth nearly ₹12,000 crore for the domestic manufacturing of battery components and materials. The initiative is expected to complement the existing ₹18,100 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing and help address a critical gap in India's EV ecosystem.
Over the past few years, India has made considerable progress in attracting investments for battery cell production. However, industry stakeholders have consistently pointed out that a large portion of the battery value chain continues to rely on imported materials. While cell manufacturing capacity is being created domestically, many of the essential inputs required for battery production are still sourced from overseas markets, limiting overall localisation.
The proposed scheme aims to change this dynamic by encouraging local production of critical battery materials and components. Reports indicate that the incentive framework may cover Cathode Active Materials (CAM), Anode Active Materials (AAM), electrolytes, copper foil, battery separators and other advanced battery materials that form the backbone of modern EV batteries.
For India's rapidly expanding EV sector, these components are far more than just manufacturing inputs. They represent a strategic part of the supply chain, influencing production costs, availability, quality and long-term competitiveness. Industry estimates suggest that battery materials account for a substantial share of overall battery costs, making localisation an important lever for improving economics across the EV value chain.
The initiative comes at a crucial time as automakers continue to accelerate their electrification plans. Demand for batteries is expected to rise sharply, driven by passenger electric vehicles, electric two-wheelers, commercial EV fleets, energy storage systems and renewable energy integration projects. To support this growth, India will require a robust and dependable supply network capable of serving domestic manufacturers at scale.
According to industry projections, India could require more than 400,000 tonnes of Cathode Active Material and over 200,000 tonnes of Anode Active Material by 2030 to support the battery manufacturing capacities that have already been announced. Such figures highlight the enormous opportunity for companies willing to invest in upstream battery manufacturing and supply chain infrastructure.
A key objective of the proposed scheme is to reduce India's dependence on global battery supply chains, many of which remain heavily concentrated in China. At present, China dominates several critical segments of the battery ecosystem, including cathode processing, anode materials, battery chemicals and copper foil production. This concentration exposes manufacturers worldwide to supply disruptions, geopolitical uncertainties and price volatility.
By supporting local manufacturing, India hopes to create a more resilient and diversified supply chain while attracting global battery material producers to establish operations within the country. Such investments could strengthen domestic capabilities, improve supply security and increase value addition within India.
The proposed incentive programme is also expected to complement the ACC PLI scheme, which was launched to establish large-scale battery cell manufacturing capacity. While the PLI scheme has succeeded in attracting investments from major players, the development of upstream battery materials has progressed at a slower pace. Industry experts believe the new initiative could bridge this gap and help create a more integrated battery ecosystem.
Nevertheless, several challenges remain. Building a globally competitive battery supply chain will require access to critical minerals such as lithium, cobalt, nickel and graphite, along with significant capital investments, advanced manufacturing technologies and a skilled workforce. Industry observers have repeatedly emphasised that long-term success will depend on developing capabilities across mining, refining, recycling, component manufacturing and battery production.
For automotive manufacturers such as Tata Motors, Mahindra & Mahindra, Maruti Suzuki and Hyundai Motor India, stronger domestic sourcing could eventually translate into lower battery costs, improved supply reliability and enhanced competitiveness. Since batteries account for nearly 35-45 per cent of an EV's total cost, supply chain localisation could play a pivotal role in making electric vehicles more affordable and accelerating their adoption across the country.
As India pursues its ambitious EV targets, building battery cell factories alone may not be enough. Creating a comprehensive supply chain for battery materials and components will be equally important. If implemented effectively, the proposed ₹12,000 crore scheme could become a key milestone in India's journey towards establishing a globally competitive EV supply chain and emerging as a major hub for advanced battery manufacturing.
A consortium of U.S. and Saudi Arabian companies has moved ahead with plans to develop a US$5 billion integrated oil refinery and export corridor in the Gulf, aiming to strengthen regional energy infrastructure and reduce reliance on the strategically important Strait of Hormuz for crude exports. The project comes as geopolitical tensions continue to disrupt energy supply routes across the Middle East. The proposed development will combine refining, storage and export infrastructure, enabling crude oil to be processed and shipped through alternative routes outside the Strait of Hormuz. The initiative is expected to improve supply chain resilience by providing an additional export channel for petroleum products while supporting uninterrupted access to global markets. The project is being developed by the MERA Oil consortium, which comprises U.S. and Saudi partners. According to the consortium, the investment is intended to strengthen the Gulf's downstream energy capabilities at a time when regional producers are seeking to diversify export options amid continued security risks affecting maritime trade. The refinery project aligns with a broader regional trend of investing in infrastructure that bypasses the Strait of Hormuz, one of the world's most critical maritime chokepoints. Gulf countries have accelerated plans for new pipelines, export terminals and logistics corridors following repeated disruptions to shipping in the region. The Strait of Hormuz remains a vital artery for global energy trade, carrying a significant share of the world's oil exports. Recent geopolitical tensions have highlighted the vulnerability of this route, prompting governments and energy companies to pursue alternative transport and export networks to improve supply security and reduce operational risks. Follow CARGOCONNECT for more such updates.
Brazil has emerged as India's second-largest pharmaceutical export destination, overtaking several traditional European markets as Indian drugmakers strengthen their presence in Latin America's largest healthcare market. Exports to Brazil reached $916 million and are on track to cross the $1 billion mark in FY27 if the current growth momentum continues. According to trade data from the Directorate General of Commercial Intelligence and Statistics (DGCIS), Brazil now accounts for 2.94% of India's pharmaceutical exports, behind only the United States, which continues to dominate with a market share of more than 30%. Indian pharmaceutical shipments to Brazil have recorded a compound annual growth rate of 17-18% over the past two years. The growing demand is being driven by Brazil's expanding pharmaceutical market, valued at around $45 billion in 2024. Rising healthcare expenditure, strong demand for generic medicines and increased government procurement have created opportunities for Indian manufacturers known for supplying affordable, high-quality drugs. Despite the strong growth, Brazil remains one of the more challenging export markets for pharmaceutical companies. The country's drug regulator, ANVISA, maintains stringent approval and manufacturing compliance standards that are often considered comparable to those of leading global regulators. Industry executives also point to currency volatility and complex registration procedures as key challenges for exporters. Indian pharmaceutical companies have expanded their footprint by participating in government tenders and strengthening partnerships with local distributors and retail pharmacy networks. Industry experts say ongoing engagement between India's Pharmaceuticals Export Promotion Council (Pharmexcil) and Brazilian regulatory authorities has helped companies better navigate the country's regulatory framework and market-entry requirements. Several Indian drugmakers, including Torrent Pharmaceuticals, have established a strong presence in Brazil across therapeutic segments such as central nervous system and cardiovascular medicines. Other leading manufacturers are also increasing investments to expand product portfolios and strengthen distribution networks in the country. The rapid growth in exports highlights India's increasing diversification beyond its traditional pharmaceutical markets. With sustained demand for generic medicines and continued regulatory engagement, Brazil is expected to remain a key growth driver for India's pharmaceutical exports in the coming years. Follow CARGOCONNECT for more such updates.
India has joined a US-led initiative aimed at building secure and resilient supply chains for artificial intelligence (AI), semiconductors and other critical technologies, becoming one of 35 participating countries in the Pax Silica partnership. The move is expected to deepen international cooperation on trusted technology ecosystems while reducing vulnerabilities in global AI supply chains. The announcement was made at the Pax Silica Summit, where participating countries endorsed a joint declaration promoting collaboration across AI infrastructure, semiconductor manufacturing, advanced computing, critical minerals, energy systems and digital connectivity. The initiative is designed to strengthen supply chain resilience by encouraging trusted partnerships among member nations. For India, participation is expected to support ongoing efforts to expand domestic semiconductor manufacturing, strengthen electronics production and attract investment into AI infrastructure. The partnership also aligns with the country's broader objective of becoming a key node in global technology and manufacturing supply chains. Beyond semiconductors, the initiative covers the full AI value chain, including software platforms, data infrastructure, advanced manufacturing, logistics networks, mineral processing and energy systems required to support next-generation computing. Member countries have committed to improving coordination on investment, infrastructure development and supply chain security. The expanded coalition reflects growing international efforts to diversify technology supply chains amid increasing geopolitical competition and concerns over concentrated manufacturing capacities. By strengthening cooperation among trusted partners, Pax Silica seeks to improve the reliability of supplies for industries dependent on AI, high-performance computing and advanced electronics. Industry observers say India's inclusion could enhance its role in the global semiconductor and AI ecosystem by creating new opportunities for investment, technology collaboration and supply chain integration. As demand for AI infrastructure continues to grow, participation in multilateral technology partnerships is expected to play an increasingly important role in shaping future manufacturing and logistics networks. Follow CARGOCONNECT for more such updates.
