The Union Budget 2025–2026 provided electric mobility (e-mobility) initiatives in India a boost with a funding increase of more than 20% over the previous year.
From Rs 4,434.92 crore in 2024–2025 (revised estimates: RE) to Rs 5,322 crore in the most recent Budget (Budget estimates: BE), the total amount allotted for these initiatives has increased. Four main programs fall under the general heading of “e-mobility,” which aims to replace fossil fuels and promote the production of electric vehicles and associated parts in India in order to make road transportation more environmentally friendly.
In FY26(BE), funding for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, a two-year program initiated in September 2024 to support public charging stations and a variety of electric vehicle types, grew by more than 114% to Rs 4,000 crore.
In order to boost the adoption and production of EVs, the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) was launched in 2024. In FY26, it quadrupled to Rs 12 crore from Rs 6.16 crore in FY25 (RE). SMEC was likewise founded with the intention of creating jobs in the EV manufacturing sector and making India’s industry globally competitive.
With an emphasis on promoting electric bus operations, the PM-eBus Sewa Scheme increased from Rs 500 crore in FY25 (RE) to Rs 1310 crore in FY26 (BE).
From almost Rs 4,000 crore in FY24 to Rs 2,058 crore in FY25 (RE), funding for the Scheme for Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in India (FAME-India) decreased. The government focused on installing the required EV charging infrastructure and offered incentives for the purchase of electric vehicles under this program. The program’s second phase, which started in 2015, is currently in operation. The FY26 plan has not received any funding in the most recent budget.
The most recent Union Budget 2025–2026 did not include funding for an extra Electric Mobility Promotion Scheme that provided incentives for sophisticated battery-equipped EVs. This scheme had an expenditure of Rs 500 crore for approximately four months till July 2024.
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