India’s electric vehicle transition could become a major employment engine, but its success may depend on how quickly the country builds a domestic battery industry. A joint study by the International Council on Clean Transportation (ICCT) and IIM-Bangalore estimates that India’s EV economy could support more than 20 million jobs by 2040 under an ambitious electrification pathway. EV Jobs in India could expand sharply across manufacturing, logistics, finance, charging, and other services.
However, the study highlights a critical challenge: without greater battery-cell localization, the shift from internal-combustion vehicles could initially displace more automotive jobs than it creates.
How Many EV Jobs Could India Create by 2040?
India could generate more than 20 million EV-related jobs by 2040 under the high-ambition Viksit Bharat scenario, provided the country substantially expands domestic battery-cell manufacturing. Direct EV manufacturing employment could reach 7.2 million with full battery localisation, while indirect employment could add around 17.3 million jobs across the wider EV ecosystem.
India’s EV Economy Could Become a $620 Billion Opportunity
The ICCT report examines three possible pathways for India’s electric mobility transition through 2040:
- Business as Usual (BAU): Based on existing policies and market trends.
- Industry Commitment: Reflects electrification targets announced by automakers.
- Aligned with Viksit Bharat: Represents a high-ambition pathway involving faster electrification and stronger policy support.
Under the Aligned with Viksit Bharat scenario, annual economic output linked to EVs could increase dramatically from $12.8 billion in 2024 to $620.5 billion by 2040.
For comparison, the projected figure is $172.1 billion under BAU and $506.1 billion under the Industry Commitment scenario.
This highlights the potential scale of India’s EV manufacturing and supporting ecosystem if electrification accelerates.
EV Jobs in India Depend on Battery Localization
The transition to electric mobility does not automatically translate into more employment.
EVs generally require fewer mechanical components than conventional internal-combustion-engine vehicles. As a result, manufacturing shifts could affect jobs associated with engines, transmissions, and fuel systems.
The study indicates that around 60% of traditional ICE manufacturing jobs could initially be displaced during the transition.
The crucial turning point is battery-cell localisation.
According to the study, India’s net employment impact becomes positive after domestic battery-cell manufacturing crosses a 25% localization threshold. Below that level, the country could lose more automotive jobs than it creates because a significant portion of the value chain would remain dependent on imported battery cells.
20 Million-Plus Jobs Could Emerge Across the EV Ecosystem
The employment opportunity extends well beyond vehicle assembly.
Under the high-ambition pathway, direct employment could rise substantially as battery manufacturing and other EV-related industries expand.
| Employment area | Lower battery localization | Full battery localization |
|---|---|---|
| Direct EV jobs | 4.3 million | 7.2 million |
| Indirect jobs | — | 17.3 million |
| Total EV ecosystem | Around 11–12 million | 21.7 million |
Direct employment could include battery-cell assembly, battery components, and cathode/anode processing.
Meanwhile, indirect employment could spread across:
- Logistics and transportation
- Raw-material supply
- Trade and distribution
- EV financing
- Charging infrastructure
- Services supporting EV users and manufacturers
With full battery localization, the broader EV economy could therefore support approximately 21.7 million jobs by 2040.
From 90,000 EV Manufacturing Jobs to Millions
The scale of the potential employment expansion becomes clearer when compared with current levels.
Direct jobs linked to EV manufacturing stood at roughly 90,000 in 2024. Under the Aligned with Viksit Bharat scenario, that number could reach approximately 4.3 million by 2040 with little battery localization.
With 50% battery localization, direct EV employment could rise to around 5.8 million.
At 100% battery localization, direct employment could reach approximately 7.2 million.
This makes battery manufacturing one of the most important factors determining how much employment India captures from the EV transition.
Battery Demand Could Surge to 480 GWh by 2040
India’s future battery requirements are expected to grow rapidly alongside EV adoption.
Under the Aligned with Viksit Bharat scenario, battery demand is projected to increase from approximately 12 GWh in 2024 to:
- 312 GWh by 2032
- 480 GWh by 2040
The scale of this projected demand underscores why domestic cell production has become a strategic issue for India’s EV industry.
If battery cells are largely imported, a significant share of the economic value associated with this enormous demand could remain outside India. Expanding domestic production could instead retain more value within the country’s manufacturing ecosystem while supporting additional employment.
India Faces a Major Battery Manufacturing Gap
India currently has around 1.4 GWh of domestic battery-cell manufacturing capacity, according to the supplied study data.
That represents less than 3% of projected demand.
The gap becomes particularly important when considering the country’s localization ambitions. To achieve 50% battery localization by 2040, India would need to add approximately 87–112 GWh of battery-cell manufacturing capacity.
Announced projects could increase India’s domestic capacity to around 128 GWh, but the report indicates that further capacity expansion would be necessary to substantially increase domestic battery production.
Government’s ₹18,100-Crore Battery Manufacturing Push
The Indian government is already attempting to build a domestic advanced-battery ecosystem through the ₹18,100-crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage.
The programme targets an initial 50 GWh of battery-cell manufacturing capacity.
The policy is intended to encourage investment in domestic battery production and reduce dependence on imported cells and other critical battery technologies.
For EV Jobs in India, expanding this manufacturing base could have implications beyond battery factories themselves. A larger domestic cell industry can also stimulate demand for components, raw materials, logistics, recycling, engineering, financing, and supporting services.
Why Battery Cells Are the Key to India’s EV Jobs Boom
The employment equation is ultimately linked to where EV value is created.
A rapidly growing EV market can increase vehicle production and create jobs, but if critical components such as battery cells are imported, some of the manufacturing value and associated employment opportunities remain outside the country.
Domestic battery production can potentially create jobs across several stages, including:
- Battery-cell manufacturing
- Cathode and anode processing
- Battery-pack assembly
- Battery components
- Raw-material supply chains
- Logistics and warehousing
- Battery recycling
- Engineering and technical services
- Charging infrastructure
This is why the study identifies battery localization as a critical factor in converting EV adoption into a larger domestic employment opportunity.
Electric Vehicles Day Puts India’s EV Opportunity in Focus
Electric Vehicles Day has renewed attention on the global shift toward electric mobility and India’s potential role in that transformation.
For India, the EV transition is no longer only about replacing petrol and diesel vehicles. It also involves building a broader industrial ecosystem around batteries, components, manufacturing, charging, finance, logistics, and services.
The ICCT projections suggest that the economic opportunity could become significantly larger if India combines rapid EV adoption with deeper domestic manufacturing.
Key Takeaways
- 20 million-plus: Potential total EV-related employment by 2040 under the high-ambition pathway.
- 21.7 million: Potential total EV ecosystem jobs with full battery localisation.
- 7.2 million: Potential direct EV jobs with 100% battery localisation.
- 5.8 million: Estimated direct EV jobs with 50% battery localisation.
- 17.3 million: Potential indirect jobs across supporting sectors.
- 25%: Battery-cell localisation threshold identified as a key employment turning point.
- 1.4 GWh: Current domestic battery-cell manufacturing capacity.
- 480 GWh: Projected battery demand by 2040 under the Viksit Bharat-aligned pathway.
- ₹18,100 crore: Government PLI allocation for Advanced Chemistry Cell battery storage.
- $620.5 billion: Projected annual EV-linked economic output by 2040 under the Viksit Bharat-aligned scenario.
The Road Ahead for India’s EV Industry
The study presents India’s EV transition as both an industrial opportunity and a manufacturing challenge. Rapid electrification could create millions of new employment opportunities, but the scale of those gains will depend heavily on how much of the EV value chain India develops domestically.
For EV Jobs in India, battery cells represent a particularly important link between vehicle adoption and job creation. Expanding domestic cell manufacturing, strengthening component supply chains and building supporting infrastructure could determine how much economic value India captures from the country’s shift to electric mobility.
If battery localization advances alongside EV adoption, India’s electric-mobility transition could extend well beyond cleaner transportation—creating a large manufacturing and services ecosystem through 2040.
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