The Indian government is reportedly developing a new subsidy scheme for companies manufacturing electricity grid batteries as part of the country’s transition to clean energy. The proposed production-linked incentive subsidy scheme would provide a total of $2.63 billion from this year until 2030 to support companies in establishing battery cell manufacturing capacity in India, according to a power ministry proposal. The plan recognizes that there are limitations on the expansion of coal-based thermal generation due to international opinion and environmental concerns. It also highlights the importance of domestic battery cell manufacturing to reduce India’s reliance on China for battery imports. If India fails to establish local manufacturing capacity for battery energy storage systems promptly, it would result in significant imports from China. The government’s initiative aims to boost clean energy adoption, create manufacturing jobs, and enhance energy security in the region.