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The rapid advancement of sodium-ion batteries (SIBs) offers a promising alternative to lithium-ion batteries, especially for India, with its abundant sodium resources. Despite their potential, SIBs face significant challenges, including R&D funding, a lack of pilot projects, and the dedicated recycling frameworks. This manuscript explores the current state of SIB technology in India, examining its potential applications in grid storage, rural electrification, and electric vehicles. It outlines strategic policy recommendations, such as expanding the Production Linked Incentive Scheme to include SIBs, developing a National Sodium-Ion Battery Research Mission, and fostering industry-academia collaboration. By addressing these gaps, India can position itself as a leader in sustainable energy storage, leveraging its sodium resources to reduce dependency on imported lithium, improve energy security, and promote cost-effective, environmentally friendly energy solutions. • It emphasizes leveraging abundant sodium resources to reduce dependency on imported lithium and enhance energy security. • The potential of SIBs for applications such as low-speed electric vehicles is highlighted. • The SIB-specific recycling frameworks and safety standards may foster a circular economy and environmental sustainability. • Public-private partnerships and incentivizing academia-industry collaborations may drive innovation in SIB technologies. • Expantion the PLI Scheme and establishing a National Sodium-Ion Battery Research Mission would be fruitful.