At the intersection of India's stated aim to become a global manufacturing hub and the growing momentum in electric vehicle (EV) production, the country is considered to hold a potential advantage due to its domestic market size and available workforce, according to JBM Group's Vice Chairman and Managing Director, Nishant Arya.

Speaking at the 'ET Auto Manufacturing Innovation Summit' held in Gandhinagar, Gujarat, Arya stated, "The next two decades belong to India," adding that the country's varying climatic conditions may offer an opportunity to develop EVs adaptable to different environments.

He noted that India is advancing towards becoming a global manufacturing base, supported by initiatives in skill development, technological integration, and design-oriented production models.

India's manufacturing sector contributes approximately 17% to the national GDP. The Government aims to increase this to 25% under the 'Make in India' and 'Atmanirbhar Bharat' (self-reliant India) initiatives. Programmes such as the Production Linked Incentive (PLI), with a total allocation exceeding Rs. 2 trillion (US$ 24 billion), are designed to support key sectors including auto components, advanced batteries, and semiconductors. The automotive sector accounts for nearly 49% of India's manufacturing GDP.

"With the right combination of R&D, green technologies, infrastructure, and human capital, India is prepared to lead not just in scale, but in substance," Arya remarked.

From build-to-print to design-to-delivery

Arya stated that Indian manufacturing is shifting from its earlier role focused on assembly. "We used to operate in a build-to-print mode. That era is over," he said.

He attributed this change to increasing private sector investment in research and development. Although India's gross expenditure on R&D (GERD) remains around 0.7% of GDP - below the global average - private sector involvement has increased, particularly in the automotive and electronics industries. The Design Linked Incentive (DLI) scheme for semiconductors, with an outlay of Rs. 100 billion, was introduced to encourage domestic intellectual property development.

"Today, the focus is on design-to-delivery. It is essential to develop intellectual properties, build modular products, and bring them to global markets swiftly," he stated.

The Government has also introduced the Research Development and Innovation (RDI) Scheme, with an outlay of Rs. 1 trillion, to increase private sector participation in R&D, particularly in areas deemed strategic or emerging.

The RDI Scheme is intended to offer long-term or zero-interest financing to private firms. It targets projects that are at advanced Technology Readiness Levels (TRLs) and facilitates access to critical or strategically important technologies. Additionally, it proposes a Deep-Tech Fund of Funds to invest in technology-based enterprises.

EV ecosystem and sectoral coordination

Arya emphasised the need for a systems-level approach to EV manufacturing. "Focusing on a single aspect, such as batteries or motors, is insufficient. The entire EV ecosystem must progress in unison - from semiconductors and power electronics to charging infrastructure and battery packs," he said.

According to available data, EV sales in India exceeded 1.5 million units in FY24, a 50% increase from the previous year. Projections indicate sales could surpass two million units in FY25. The sector currently includes more than 500 registered EV start-ups and planned investments exceeding Rs. 250 billion in areas such as battery cell production and vehicle platforms.

Arya pointed to India's geographic variation as a potential asset in product testing, stating that "the country's extreme climates - from the Himalayas to the Thar Desert - provide a natural testing ground for vehicles in diverse conditions."

Human capital and skill requirements

Arya reiterated that the availability of skilled human resources remains an important factor for manufacturing competitiveness. "The best equipment is of little use without skilled talent," he said.

He also referred to the role of educational and vocational institutions, including the summit host, in developing relevant skills for the sector.

The automotive component sector directly employs approximately two million people, and up to six million across the wider value chain. The shift towards automation, artificial intelligence, and electrification is altering the required skill sets, making continuous training necessary.

"Learn, unlearn, relearn - that is the new mantra," Arya said, noting that India's workforce, with a median age below 29, may offer advantages if adequately trained.

EV manufacturing outlook and infrastructure

In response to a question about how India could accelerate its transition to becoming a global EV manufacturing hub, Arya discussed the importance of focusing on design capabilities rather than assembly alone, and treating the EV sector as a connected value chain. He also mentioned the need for supporting infrastructure.

India currently has over 10 GWh of installed advanced battery capacity, with a target of reaching 50 GWh by 2030. More than 7,000 public EV chargers have been installed, with proposals to multiply this number significantly. Some firms, such as JBM, are also investing in alternative energy technologies including solar power, hydrogen, and biofuels.

These developments are positioned in line with India's broader objective of achieving net-zero carbon emissions by 2070. "Every product must contribute to a cleaner tomorrow. Sustainability is not a trend - it is the direction," Arya remarked.

In closing, Arya said, "The opportunity is immense, but the window is finite. India must build for the world - local for global, not local for local."