The battery energy storage sector in India is grappling with increased costs due to a single Harmonised System of Nomenclature (HSN) code that leads to inconsistent categorization of battery systems, often mislabeling them as power banks and triggering higher customs duties. In a meeting with the Ministry of Power, industry representatives stressed the need for distinct HSN codes for lithium-ion cells, battery packs, and storage systems to eliminate ambiguity and rationalize tariffs. They also requested an approved list of battery manufacturers to foster a domestic supply chain and clarity on customs duty deferment for the 12-year lifespan of storage projects. Current regulations restrict storage systems to charging only from co-located renewable energy sources, limiting their operational flexibility. As India aims to enhance grid-level storage for renewable energy integration, the stationary energy storage market is expected to grow at over 23% CAGR through 2035. This growth is anticipated to moderate to around 12% annually beyond 2035 as the market matures.