India's Energy Storage Future: GST Cuts and Innovations

Industry leaders urge India to reduce GST on lithium-ion batteries to boost domestic manufacturing and lower import dependency, amid rising global prices. Innovations in sodium-ion battery technology could further enhance India's energy storage capacity, supporting its clean energy transition and ambitious renewable energy targets.

In a bold call for policy reform, R K Jaain, CFO of Kushmanda Power Ltd, emphasized the need for India to reduce the goods and services tax (GST) on lithium-ion batteries to 5% from the current 18%. Such a move, Jaain argued, would bolster domestic manufacturing and make Indian products more competitive.

Jaain highlighted the challenges posed by global lithium shortages and China's export dominance, which are pressuring Indian manufacturers. He warned against making imports too cheap, as it could hinder local production. He also stressed the importance of simplifying fire safety regulations and enhancing supply chain management to support the industry.

Meanwhile, J P Gupta of the PHD Chamber of Commerce announced India's goal of reaching 500 gigawatts of energy storage capacity by 2030. Innovations in sodium-ion battery technology could augment lithium-ion solutions, driving the country's clean energy transition. Gupta acknowledged resource constraints but encouraged leveraging international sources.

(With inputs from agencies.)