February 3rd, 2025
The Union Budget 2025-26 has revealed a bold strategy to transform India’s EV sector. Here’s how a major nuclear power push and smart duty cuts are setting the stage for a manufacturing boom.
First, let’s look at the power story. The government is investing ₹20,000 crore in nuclear energy to solve one of the biggest challenges in EV adoption – reliable power for charging stations. Unlike solar or wind power, nuclear energy provides steady, round-the-clock power supply.
“We’re thinking ahead,” says Raj Kumar, Chief Executive of the Electric Mobility Association of India. “This ensures we can support millions of EVs on Indian roads in the coming years.”
Making EVs More Affordable
Meanwhile, the government has cut duties on key materials and equipment:
- Battery materials like lithium, cobalt, and nickel
- Processing equipment for recycling batteries
- 63 types of manufacturing tools
As a result, industry experts predict a 15-20% drop in production costs. Therefore, Indian-made EVs will become more competitive globally.
Battery Production Gets a Boost
The most exciting change is happening in battery manufacturing. Because of lower duties on raw materials and equipment, India can now build a strong domestic battery industry.
Dr. Sarah Chen from EVTech International explains, “By fixing both power supply and manufacturing costs, India is moving from being an importer to becoming a major player in the global battery market.”
Global Interest Grows
These changes are already attracting attention. Several international EV makers are now looking to start or expand their operations in India. They’re drawn by better cost advantages and reliable infrastructure.
What This Means for Business
Industry players can now:
- Cut production costs through duty benefits
- Scale up battery manufacturing
- Build more charging stations confidently
- Boost R&D with better access to materials
Smart Next Steps
To make the most of these changes, experts suggest:
- Update supply chains to use duty benefits
- Plan charging networks near nuclear power stations
- Start battery recycling operations
- Partner with local battery makers
Moving Forward
This is a turning point for India’s EV sector. Furthermore, it shows India’s commitment to clean transport. Most importantly, businesses that act quickly will gain an edge in one of the world’s fastest-growing EV markets.