Kushmanda Power CFO Advocates for 5% GST Reduction on Lithium-Ion Batteries to Boost Local Manufacturing in India
R K Jaain, CFO of Kushmanda Power Ltd, has called on the Indian government to reduce the GST on lithium-ion batteries from 18% to 5% to enhance local manufacturing and lessen dependence on imports, particularly from China. He emphasized the need for regulatory streamlining and the extension of production-linked incentives for energy storage system manufacturers, as India aims for 500 gigawatts of energy storage capacity by 2030. J P Gupta, Chairman of the PHD Chamber of Commerce, underscored the role of innovation in overcoming battery energy storage challenges.
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R K Jaain, CFO of Kushmanda Power Ltd, has urged the Indian government to reduce the goods and services tax (GST) on lithium-ion batteries from 18% to 5% to bolster domestic manufacturing and decrease reliance on imports, particularly from China. He highlighted the impact of rising global lithium prices on Indian manufacturers and noted that while imported battery cells incur a 5.5% duty, making imports zero-duty could threaten local cell production viability.
Jaain also called for streamlined regulations, especially regarding fire safety, and advocated for extending production-linked incentives to energy storage system (ESS) manufacturers. India is targeting 500 gigawatts of energy storage capacity by 2030 as part of its clean energy transition, with ongoing research into sodium-ion battery technology. J P Gupta, Chairman of the PHD Chamber of Commerce, emphasized the importance of innovation in addressing challenges in battery energy storage.
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