Energy storage is gaining importance in both conventional and renewable energy sector in India. Due to several applications and benefits, energy storage systems show huge potential in Indian renewable energy sector. This paper (Part II) mainly focuses on the energy storage market potential in India, its applications and benefits as well. Part I of the two papers, presented an overview of selected energy storage technologies with a comprehensive comparison of important characteristics and features. Whereas in this paper, applications and benefits of energy storage at various stages of energy systems is presented, along with prospects of energy storage market potential, key opportunities and recent developments in upcoming years in India. This work also highlights the current status of various energy storage projects across India and few of the challenges forbidding their large-scale deployment.