India’s battery storage capacity is expected to grow to 888 GWh by fiscal 2035-36 to support renewable energy goals. The sector reached 8.7 GWh of installed capacity in the first half of 2026, marking an eleven-fold increase in just six months. This rapid expansion creates new opportunities for companies involved in battery manufacturing and grid infrastructure.
India is seeing a rapid shift toward battery energy storage systems, with new projections estimating a massive increase in capacity from the current 1 GWh to 888 GWh by the 2035-36 fiscal year. This update, released during India Energy Storage Week, highlights the growing importance of battery systems in making renewable energy reliable for the national power grid.
Rapid Growth in Installed Capacity
The domestic energy storage market is expanding faster than previously expected. In just the first six months of 2026, the country’s installed battery energy storage capacity jumped eleven-fold, rising from 0.78 GWh in December 2025 to 8.7 GWh by mid-2026. With additional projects already in progress, the nation is on track to surpass 10 GWh of installed capacity by the end of this calendar year. Beyond current installations, the sector is supported by a large pipeline of future projects, with 47 GWh of new tenders issued in the first half of 2026 alone.
Expanding Domestic Manufacturing
To support this demand, India is working to build a complete local supply chain for energy storage. Currently, the nation has approximately 2 GWh of lithium-ion battery cell manufacturing capacity. However, companies have announced plans that could scale this capacity to roughly 110 GWh by 2030. When including assembly and container packaging, the total potential capacity could reach up to 200 GWh by the end of the decade.
Investor Considerations for the Energy Sector
For investors, the energy storage transition represents a shift in how power infrastructure is built and operated. Integrating batteries with solar and wind projects is becoming the standard approach for ensuring power supply remains steady, even when sunlight or wind is unavailable. While the scale of these targets is significant, the success of this sector depends on several factors, including the actual speed of project execution, the ability to secure raw materials like lithium and other battery components, and the management of manufacturing costs.
Investors may track how individual companies in the power, battery, and renewable energy sectors manage the high capital requirements needed for such large-scale expansion. The profitability of these projects will also depend on the pricing mechanisms set by power distribution companies and government policies regarding grid integration. As the industry matures, the ability to control costs throughout the value chain will be a key factor in determining which companies can maintain healthy profit margins while scaling up their operations.