Minister H D Kumaraswamy urges industry to leverage India's FTAs for EV, and its value chain exports
February 25, 2026
India can establish itself as global leader in electric mobility manufacturing and innovation: H D Kumaraswamy
India must position itself as trusted manufacturing hub for EVs and need to take transformative steps to shift to EV; Transition to EVs must be viewed as central pillar of Viksit Bharat: Amitabh Kant
FICCI-Yes Bank report highlights need for National Export strategy for EVs; Global EV sales set to triple by 2030; Infrastructure augmentation remains key
NEW DELHI, 25 February 2026: Mr H D Kumaraswamy, Minister of Heavy Industries and Steel, Govt of India today said that India’s transition to electric mobility is aligned with Prime Minister Mr Narendra Modi’s vision of Atmanirbhar Bharat and Viksit Bharat 2047, and the commitment to achieve net zero by 2070. “With clear policy direction and strong industry participation, India can firmly establish itself as a leading global center for electric mobility manufacturing and innovation,” he added.
Addressing the ‘3rd FICCI National Conference on Electric Vehicles’, Mr Kumaraswamy further stated that electric mobility today is not merely a climate initiative, but it is an industrial strategy with strong manufacturing opportunity and supply-chain recalibration. It is about building future industries while solving present challenges, he noted.
The Minister added that securing access to critical minerals is essential for long-term competitiveness. The Rs 7,280 crore scheme to promote the domestic manufacturing of Sintered Rare Earth Permanent Magnets (REPM), marking a first-of-its-kind initiative by the government to develop a robust REPM ecosystem. “As our manufacturing depth strengthens, so does our export potential. Over the past decade, automotive component exports have nearly doubled, rising from about USD 8 billion to USD 16.9 billion, reflecting India’s deepening integration into global value chains and its growing credibility as a manufacturing hub,” he emphasized.
The Minister further stated that India’s expanding network of Free Trade Agreements, including with the EU, UK, Australia, UAE and others is opening new pathways for EVs and components. “As we consolidate domestic scale, industry must now actively pursue export markets. As we advance towards the vision of Viksit Bharat 2047, electric mobility must remain central to the Make in India agenda strengthening domestic manufacturing, deepening localization and positioning India as a global production hub for EVs, batteries and critical components,” highlighted Mr Kumaraswamy.
Mr Amitabh Kant, Former G20 Sherpa & Former CEO, NITI Aayog said that electric mobility has to be India’s next transformational leap and EVs are strategic for India. “Batteries, power electronics, semiconductor software and charging infrastructure are the new engine of value creation,” he added.
Mr Kant also stated that the global electric vehicles market is projected to reach trillions of dollars over the next decade. “Supply chains are realigning, and countries are rethinking trade localization and strategic dependencies. India must position itself as a trusted manufacturing hub for electric vehicles,” he added.
Mr Kant emphasized that electric mobility is not merely a climate imperative, but it is equally an economic, industrial, technological, and strategic opportunity. “The transition to electric vehicles must be viewed as a central pillar of Viksit Bharat 2047,” he added.
Dr Sulajja Firodia Motwani, Co-Chair, FICCI Green Mobility Committee and Founder & CEO, Kinetic Green said that India has set an ambitious vision of achieving 30 per cent electric vehicle penetration by 2030. “What was once a policy aspiration has now evolved into a clear ambition, translating into tangible market transformation across sectors. With the first phase of e-mobility adoption, India made significant progress, and we are now entering a new and accelerated phase of the e-mobility transition,” she added.
Mr Vikram Handa, Co-Chair, FICCI Green Mobility Committee and Founder & MD, Epsilon Group said, “From Green Mobility 1.0 to now 2.0, India has built an entire value chain. This spans from the processing of critical minerals to cell manufacturing, battery pack assembly, and the production of two-wheelers, three-wheelers, four-wheelers, buses, trucks, and even charging infrastructure. This comprehensive ecosystem signifies the direction in which the Indian industry is heading and reflects strong future potential.”
Mr Ganesh Mani, Co-Chair, FICCI Green Mobility Committee and COO & CEO, Ashok Leyland Ltd said, “The shift to electric vehicles is not only about environmental benefits but it is also about industrial and technological transformation. This transition will define the entire movement toward sustainable mobility for citizens across India.”
Dr Aanchal Jain, Member, FICCI Green Mobility Committee and Chief Executive Officer, PMI Electro Mobility Solutions Pvt Ltd, at the 3rd FICCI National Conference on Electric Vehicles while delivering the vote of thanks said that electric mobility is no longer an emerging concept. It is now a strategic pillar of India’s industrial transformation, climate action, and global trade ambitions.”
FICCI - Yes Bank report ‘EV Market – India’s Export Competitiveness’ was released during the inaugural session.
Highlights of the Report:
- As India invests in ecosystem development to enhance capabilities and its EV market starts to gain significance, exports become a strategic opportunity to scale production, improve cost curves, develop high quality products with technology learnings, apart from helping broaden market diversification, absorbing regulatory shifts, and develop global positioning.
- A National Export Strategy for EV at this stage could help to gain advantage for India in many markets.
- The report offers an overview of global EV developments and outlines areas where India may find opportunities to participate in constantly emerging electric mobility value chains.
- Electric mobility continues to gain traction across vehicle segments and many countries are strengthening regulatory frameworks around safety, cybersecurity, battery traceability, and sustainability, which in turn are shaping market access conditions and often act as non-tariff barriers. The report highlights that these developments underscore the need for exporters to align with international trends, standards and compliance requirements.
- To enhance competitiveness and global positioning, in key markets in Europe, LATAM, ASEAN, Japan, North America, Australia & South Africa among others, strategic measures from industry and government can include:
- Focusing on high-demand segments and those with India’s strategic strengths, preferential tariff advantages
- Entering bilateral agreements to reduce tariffs, recognize standards and establishment of test and certification facilities
- Proactive integration of homologation requirements, battery traceability & circularity, safety & sustainability compliance into product development cycles
- Enhanced R&D intensity, advanced electronics capability, battery chemistry innovation, and stronger industry–academia alignment, to meet the advancing standards, next‑generation technologies in the markets of focus and address need to reduce external dependencies in the value chain.