FEBRUARY 20259INDIA'S BATTERY STARTUPS TO WITNESS $500M BOOST, IESA FORECASTINDIA'S ECONOMY BALANCES GROWTH AMID GLOBAL UNCERTAINTIESIndia Energy Storage Alliance (IESA) has said it expects to invest USD 500 million in Indian battery and mobility startups next year, trying to accelerate research and development with innovation and advancements in the space. The development is expected to focus on R&D and India's financial markets, foreign institutional investors (FIIs), and Domestic Institutional Investors (DIIs) demonstrate strong endurance in their operations. From October through December 2024, FIIs pulled funds because of political unrest in the US elections combined with weak business profits and China's September stimulus package. Plans from DIIs served as the primary reason Sensex maintained its constant performance.product developments in the segment for startups and companies dealing with battery management systems, safety management, and electronic part manufacturers.The announcement was made at the Bharat Battery Show, part of the Bharat Mobility Global Expo 2025. The event has been attended by over 30,000 visitors, which shows increasing interest in the innovations of lead battery storage and recycling.To nurture the startup ecosystem, IESA also discussed the Start-Up Connect program it was conducting along with Hero MotoCorp. Panneerselvam Madanagopal, CEO of MeitY Startup Hub, discussed how government entities can collaborate to foster growth within the ecosystem.IESA is actively fostering the start-up community through its Start-Up and Innovation Program. The initiative works with over 400 startups and global organizations, such as UNIDO, iCreate, India Accelerator, VJTI-TBI, BCKIC, and many more, providing mentorship, technology validation, investment support, and facilitating global partnerships.Established in 2012, IESA was created by Customized Energy Solutions with a view to make India a global destination for R&D, manufacturing, and adoption of advanced energy storage, e-mobility, and green hydrogen production. The alliance contributes significantly to achieving India's goals of sustainable mobility and energy storage through these efforts. Economist Rumki Majumdar from Deloitte India highlighted, "We noticed that prior to 2020, the sensitivity of the Indian capital market movements to changes in FII was much higher. That has come down after 2020."After weighing these recent trends, Deloitte India expects GDP growth to range between 6.5 and 6.8 percent during the fiscal year 2024-25. During the second fiscal quarter of 2024-25, India achieved GDP growth of 5.4 percent, which fell below both market forecasts and RBI estimates of 7 percent.Food price hikes are an ongoing issue because retail inflation remains above the Reserve Bank of India's 4 percent target. By setting the repo rate at 6.5 percent, the central bank shows it wants to rein in rising prices.India's rural spending and the expansion of the service industry are positive highlights. The services industry, driven by finance, insurance, and real estate, keeps flourishing, enhancing urban income and exports. The increasing exports of high-value manufacturing, particularly electronics and machinery, indicate India's ascent within global value chains.Deloitte highlighted the importance of India utilizing its internal strengths, proposing economic separation from global uncertainties as a pathway to lasting growth.
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