In a significant boost to India’s electric vehicle (EV) ecosystem, the central government and several states have launched comprehensive schemes aimed at accelerating EV adoption, manufacturing, and supporting infrastructure. These developments come amid India’s ambitious climate goals and its EV30@30 target—to achieve 30% EV penetration by 2030.
PM E‑DRIVE: The New National Anchor
Leading the charge is the PM E‑DRIVE Scheme, launched in late 2024 with an outlay of ₹10,900 crore until March 2026. It serves as the successor to the FAME-II scheme, focusing on demand incentives for e-two-wheelers, three-wheelers, electric trucks, buses, and ambulances. It also supports charging infrastructure, testing facilities, and domestic EV technology development.
Complementing it is the FAME-II Scheme, still in effect, which was launched in 2019 with a budget of ₹10,000 crore. It provides direct subsidies to EV buyers and encourages local EV manufacturing through phased manufacturing programs and battery production support.
Production-Linked Incentives Fuel Manufacturing
Two major PLI schemes are further strengthening the ecosystem:
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The PLI for Automobiles and Auto Components, with a ₹25,938 crore budget, aims to increase domestic value added in EV manufacturing.
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The PLI for Advanced Chemistry Cell (ACC) with ₹18,100 crore promotes the creation of 50 GWh of domestic battery storage capacity.
Another recent addition, the SPMEPCI policy (Scheme for Promoting the Manufacturing of Electric Passenger Cars in India), offers concessional import duties to automakers investing at least ₹4,150 crore and achieving 50% domestic value addition within five years.
Tax and Infrastructure Reforms Support Rollout
India has reduced the GST on EVs and chargers to 5%, offers income tax deductions up to ₹1.5 lakh under Section 80EEB, and rolled out vehicle scrappage incentives. Norms now mandate one public charging station every 3 × 3 km grid and every 25 km along highways. A national battery-swapping policy is also in the works.
The BHEL EV Super App, currently being developed by Bharat Heavy Electricals Limited, will serve as a one-stop digital platform for charger bookings, payments, and station status updates.
State Governments Join the Green Push
Several states have aligned with the national vision by introducing their EV policies:
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Uttar Pradesh EV Policy 2022 aims for 10 lakh EVs and 1,000 electric buses by 2030, offering strong purchase and registration incentives.
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The Jharkhand EV Policy 2022 targets a 10% EV share in new vehicle registrations by 2027, with up to 70% subsidies for solar-based charging stations.
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Haryana and Uttarakhand are pushing for 100% electrification of government fleets and commercial vehicles.
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West Bengal supports EVs through discounted tariffs, green zones, and battery-swapping infrastructure.
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Surat’s Green Vehicle Policy 2025 aims for 50% EV adoption by 2030, with plans to deploy over 460 public charging points.
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Chandigarh recently expanded its EV incentives, raising the subsidized e-car quota and launching a pilot to power EV stations with solar energy.
Charging Network Expands Rapidly
India now boasts over 25,000 public EV charging stations, with Karnataka leading at 5,765 , followed by Maharashtra with 3,728 and Uttar Pradesh with 1,989. Both public and private players support these networks under government-backed guidelines.
A Multi-Layered Strategy for EV Growth
Fiscal incentives, regulatory reforms, infrastructure support, and collaborative federalism are bolstering India’s electric vehicle ecosystem. With both national and state governments actively working together, India is well on track to become a global hub for electric mobility in the coming decade.
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