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India's battery energy storage system (BESS) sector is facing a cost increase of 25-30% due to currency movements, rising raw material prices, and changes in China's export policy. Cumulative energy storage requirements in India are projected to rise to over 411 GWh by 2031-32.

The depreciation of the Indian rupee and the weakening of the Chinese yuan have contributed to higher costs. China's reduction of export tax rebates for battery products will further increase costs by an estimated 3% starting April 2026.

EPC contractors are exposed to currency risks due to fixed-price tariffs while procurement costs rise. The recent SECI solar-plus-storage tender for 1,200 MW of solar and 600 MW/3,600 MWh of storage indicates competitive pricing for six-hour discharge BESS. Overall, domestic manufacturing is essential to mitigate risks from reliance on imports as India aims to expand its renewable energy capacity.