Developing local tech, parts for EV manufacturing an 'urgent task'

India is pushing to localize technology and raw materials used in electric vehicle (EV) manufacturing, as China's grip on the global EV supply chain remained firm through the last fiscal year, the Economic Survey for FY25 revealed Friday.

- Manas Pimpalkhare

"Indigenizing technology and raw materials for electric mobility is an urgent task," wrote chief economic adviser (CEA) V. Anantha Nageswaran in the annual report, released ahead of the Union Budget.

The survey underscores the need to kick-start the energy transition with public transportation, rather than focusing solely on private EV adoption.

"Given India's vast size and limited land availability, public transportation is a more efficient alternative for a viable energy transition. National-level policies and local nudges must promote and facilitate its use, going beyond focusing on tailpipe emissions from private transportation choices," the Economic Survey said.

Expanding public transit networks could also reduce India's dependence on imported EV components, the survey noted. Currently, only 37% of India's urban population has easy access to public transport—lagging behind Brazil and China, where over 50% of city dwellers enjoy well-connected transit systems.