Electrifying Delhi’s Trade Agreements Strategy

Takeaways to Strengthen the Indian EV Supply Chain
Photo: Photographer: Dhiraj Singh/Bloomberg/Getty Images

Photo: Photographer: Dhiraj Singh/Bloomberg/Getty Images

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India’s transition to electric vehicles (EVs) is increasingly shaped by its trade strategy, as the country seeks to balance ambitious 2030 adoption targets with persistent reliance on imported battery cells, critical minerals, and advanced components. This report analyzes four recent trade agreements—with Australia, the Swiss-led European Free Trade Association, the United Arab Emirates, and the United Kingdom—and finds that India is pursuing a model of “structured openness,” combining protection for finished vehicles with selective liberalization of EV inputs and stronger provisions on investment, standards, and technology cooperation. 

While these agreements support investment and capability building, they only partially align with global EV supply hubs, leaving gaps in access to key inputs. The report argues that completing and upgrading trade agreements with major extraction, refining, and manufacturing partners, alongside a two-track strategy that differentiates between trusted partners and China-linked supply chains, will be critical for diversifying dependencies and positioning India as a competitive and resilient player in the global EV ecosystem.

This report was made possible by a direct grant from an international foundation.

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Asia, Economic Security, Energy and Sustainability, Global Markets, and Trade and International Business
Thibault Denamiel

Thibault Denamiel

Former Fellow, Economics Program and Scholl Chair in International Business
Abhinav Subramaniam

Abhinav Subramaniam

Program Coordinator and Research Assistant, Chair on India and Emerging Asia Economics

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