India’s ambitious plan to become a global leader in battery manufacturing is facing a reality check. A new report by JMK Research and the Institute for Energy Economics and Financial Analysis (IEEFA) reveals that the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme has significantly missed its early targets.
Launched in 2021 with a massive budget of INR 181 billion ($2.08 billion), the program aimed to set up 50 gigawatt hours (GWh) of domestic battery capacity by 2025. However, as of October 2025, only 2.8% (1.4 GWh) of that goal has been met all of it by a single company, Ola Electric.
Wide Gaps in Jobs and Investment
The report highlights a staggering difference between the government’s original goals and what has actually happened on the ground:
- Jobs: While the scheme hoped to create over 1 million jobs, only 1,118 positions (just 0.12% of the target) have been filled.
- Investment: Only INR 28.7 billion ($330 million) has been committed so far, covering about a quarter of the expected investment.
- Incentives: To date, no financial rewards have been paid out because the strict production milestones have not been reached.
Prabhakar Sharma, a senior consultant at JMK Research, noted that India still depends on imports for nearly 100% of its battery cells. He warned that “on-ground progress remained sluggish” despite strong initial interest from businesses.
Why is Progress Slow?
The study identifies several “bottlenecks,” including a lack of prior expertise among some selected firms. Interestingly, established battery giants like Exide and Amara Raja did not qualify for the scheme because the rules favored new entrants promising higher local content and lower subsidies.
Additionally, major players have scaled back. Ola Electric has reduced its immediate expansion plans, and while Reliance New Energy expects to finish its first phase on time, other projects remain delayed.
The Path Forward
To get the scheme back on track, experts suggest India must focus on more than just subsidies. The report recommends:
- Building better testing and certification centers.
- Creating a dedicated policy for sourcing and refining “critical minerals” like lithium.
- Attracting global battery experts to help with technology transfers.
Vibhuti Garg, Director at IEEFA, emphasized that bringing in experienced global players would “strengthen capabilities” and help steer the industry in the right direction.
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