India is zooming ahead on the road to green transportation, and electric vehicles (EVs) are leading the charge! With everyone buzzing about cleaner air, reducing fuel bills, and cutting down emissions, EVs are clearly the future. But let’s be honest – understanding the maze of policies, incentives, and schemes can feel like trying to solve a Rubik’s cube in the dark. Fear not! This guide breaks it all down in a fun, easy-to-grasp way, whether you’re an EV buyer, a business owner, or a manufacturer.
Key points to note here:
- EVs help save the environment
- Tons of incentives and subsidies
- Charging infrastructure is growing
- Lower taxes, more savings!
Why India is Going Electric?

India is on a mission to make transportation cleaner and more sustainable. Here are the three main reasons why the country is embracing EVs:
1. Environmental Concerns: One of the biggest problems being faced by many cities across India is air pollution caused primarily by vehicular emissions. It is possible that if better pollution control measures are put in place, there will be no tailpipe emissions from these electric vehicles. Going electric is the way forward if we should nip pollution in the bud and have cities filled with healthy people.
2. Economic Benefits: Imported fuel eats away most money which is not good for India. There is the possibility of moving away from fuel-powered vehicles which will save the country money and improve the energy independence of the nation. In addition, the EV industry can bring about a huge number of additional jobs in such areas as production, servicing, and improvement of infrastructure.
3. Global Commitments: Climate change is another area where India has vowed to do its best and EVs are critical to deliver on this. EVs help to meet India’s foreign obligations such as those made in the Paris Agreement by minimizing greenhouse gas emissions.
Key Government Policies Supporting EV Growth

In order to facilitate an increase in the number of EVs, the government has come up with certain policies and schemes to assist all the stakeholders in electric mobility. Let’s examine which of them are the most worthwhile to consider as the key ones:
FAME Scheme: Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
This scheme was introduced in the year 2015 and is considered the spine of the mission of electric vehicles in India. With this scheme, the aim is to promote the adoption of electric and hybrid vehicles by providing certain monetary benefits.
- FAME I: This phase focused on providing subsidies to make EVs cheaper for buyers and encouraged the development of charging infrastructure.
- FAME II: With a larger budget, this phase targets electric buses, two-wheelers, and shared transport. It also heavily invests in expanding charging stations across cities and highways, aiming to set up around 2,700 charging stations nationwide.
National Electric Mobility Mission Plan (NEMMP)

The NEMMP is a long-term plan to promote electric mobility by 2030. Its focus is on reducing fuel consumption and pollution while encouraging the use of cleaner alternatives. A lot of this is about boosting research and development for EV technology, including battery systems and charging networks, to ensure India’s EV market keeps growing.
Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC)
One of the biggest challenges for EVs is the cost of batteries. To help with this, the PLI scheme offers incentives to manufacturers who set up battery production units in India. This means lower costs for EV batteries, which can make EVs more affordable for everyone.
State-Level EV Policies

Beyond the central government, individual states have also rolled out their own EV policies, each with its own focus and incentives. Here are some examples:
- Delhi: Offers big subsidies on EV purchases, plus incentives for scrapping old vehicles and tax breaks.
- Maharashtra: Provides extra subsidies for two-wheelers and four-wheelers, and supports the setup of charging stations.
- Karnataka: Encourages manufacturers to set up shop with incentives and focuses on building charging infrastructure.
- Tamil Nadu: Focuses on becoming a manufacturing hub for EVs and promoting charging station networks.
While some states focus on helping consumers by reducing costs, others are more focused on building the industry by attracting manufacturers. This combined effort between states and the central government is helping India move closer to its EV goals.
Building the Charging Infrastructure

For EVs to be accepted as a common option, it will help if a strong charging infrastructure is in place. The government as well as private players are addressing this:
- Central Government Initiatives: The government, according to the FAME II scheme, will contribute to the establishment of public charging stations in the cities, along the highways and industrial areas.
- Private Sector Role: Tata Power, Ather Energy and others are rising up to the occasion by building their charging networks in order to enhance the ease of purchasing electric vehicles.
Furthermore, there are grants available to individuals as well as organizations for the installation of private or public charging stations. Such support is linked to the aim of facilitating the construction of a viable charging infrastructure in the nation.
Subsidies and Tax Benefits for EV Buyers
To make electric vehicles more appealing to buyers, the government is offering several financial incentives:
- Income Tax Deductions: Under Section 80EEB, buyers can claim deductions on the interest paid on loans taken to purchase electric vehicles.
- GST Reduction: The Goods and Services Tax (GST) on EVs has been reduced from 28% to just 5%, making them more affordable compared to traditional petrol or diesel cars.
- State-Level Benefits: In addition to central incentives, many states offer additional benefits, such as reduced road taxes and registration fees, making EVs an even more attractive choice.
Challenges in Implementing EV Policies

Credits: Canva
While there’s plenty of support for electric vehicles, there are still some hurdles that need to be overcome:
- Lack of Charging Infrastructure: Despite the push for more charging stations, they are still not evenly spread, especially in rural areas. This lack of infrastructure could slow down EV adoption.
- High Upfront Costs: Even with subsidies, EVs still cost more upfront than traditional vehicles. As technology improves and more manufacturers enter the market, these costs should come down.
- Need for Awareness: Many potential buyers aren’t aware of the benefits of EVs or the incentives available to them. More public education is needed to help people make the switch to electric vehicles.
The Future of EV Policies in India
Looking ahead, EV policies will continue to get better in India. The Government’s current plan is to enhance the FAME scheme, increase funding for battery research, and strengthen even more the existing charging infrastructure. To attain a goal of 30% EV penetration by 2030 requires this effort both in the public as well as private spheres but as the right set of policies are already in place countries are ready to become one.
The Road Ahead for EVs in India
Electric vehicle (EV) policies have been aimed at creating a greener energy future for the country. If you are a consumer who wishes to purchase an EV, a manufacturer who wants to tap the market, or a business wanting to invest in the charging infrastructure, then these policies are indeed for you. Considering all the advantages of EVs available today in India, this is the best opportunity where everyone should embrace the need for the promotion of sustainable mobility.
For people switching their mobility patterns, Switching to an EV not only makes environmental sense but also makes business sense because there are many incentives that one can reap. Using the appropriate tools in regard to electric vehicles, it is easier than you would chase yourself making it sound.