EV Ready India

Over the last few years, there has been growing encouragement of local manufacturing of lithium-ion batteries and other EV components with policy measures such as the PLI scheme and proposals for manufacturing giga factories entering the fray. In light of a tumultuous and unpredictable global trade environment, localisation of value chains and production capabilities has become a necessity, especially with the pandemic-induced disruption of supply chains overly dependent on China. This white paper locates itself in the context of such challenges and opportunities for India’s EV manufacturing industry. It underscores the potential of Indian States to help India become an EV manufacturing powerhouse. Identifying certain vital factors that are essential for a region’s manufacturing success, it points out states which possess a competitive advantage under the given domain. The white paper argues for states to strategically realign their supply-side incentives and industrial policy tenets to fully leverage their respective competitive advantages to hasten the creation of robust, localised EV value chains that can cater to the world.