NITI Aayog flags battery, tech gaps as India struggles for space in global EV trade

The push comes as global EV trade has expanded at breakneck speed, while India’s presence remains limited.

• India should boost domestic EV battery and tech production to avoid low-value roles.
• India's EV exports are 0.1% of global share, mostly small affordable vehicles.
• India's high-value EV exports limited by reliance on imported tech

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India needs to accelerate domestic production of batteries, manufacturing equipment and advanced technologies for electric vehicles to avoid being locked into the lower end of the global EV value chain, NITI Aayog’s Trade Watch Quarterly published this month has said.

The government's think tank has called for targeted foreign investment, technology tie-ups and dedicated testing infrastructure to cut import dependence and improve export competitiveness.

“India’s heavy dependence on imported battery-manufacturing equipment and advanced technologies has direct implications for its trade competitiveness and long-term positioning in the global EV value chain,” NITI Aayog said in the report.

The report comes at a time when global EV trade has expanded at breakneck speed but India’s presence remains limited.

World imports of electric vehicles jumped from $4.6 billion in 2020 to nearly $150 billion in 2024, driven by stricter climate targets and a rapid shift away from internal combustion engines.

India’s EV exports rose from $1.2 million in 2020 to $84 million in 2024 but still make up just about 0.1 percent of global exports. Imports stood at $211 million in 2024, also around 0.1 percent of inbound shipments globally, pushing the country’s trade deficit in the segment to $170.5 million, the report said.

Globally, EV exports are dominated by China and Germany, which together account for around 50 percent of shipments. Belgium and Mexico have also emerged as key hubs. The US, the UK, Germany, France and Belgium remain the largest EV buyers, accounting for nearly half of global imports.

India’s exports are concentrated in small, affordable EVs, with Nepal accounting for 46.4 percent of shipments in 2024, the report said, adding that markets such as Indonesia and Japan have begun to feature but volumes are small.

On the other hand, Indian imports are skewed towards premium vehicles and advanced components, mainly from Germany and China.

This gap reflects India’s continued dependence on imported battery equipment, advanced chemistries and precision machinery, limiting its ability to export high-value EVs, battery cells and power electronics.