India is committed to reducing the GHG emission intensity by 33% - 35% over 2005 levels by 2030. In order to fulfil its global commitment and mitigate the adverse impact of automobiles, the government is taking major steps to bring a paradigm shift towards sustainable transportation.
The Automobile sector contributes 49% to India's manufacturing GDP and 7.1% to India's GDP. Acknowledging its significance, the Government of India has recognized it as a major thrust sector. It is proactively promoting the electric vehicle industry, leading towards a greener and sustainable future for India.
Incentives provided by the government not only promote India's goals in the Paris Agreement but also make electric vehicles economical for the masses.
Driving the Greener Future
Central as well as state governments are promoting the adoption of Electric Vehicles (EVs) through various fiscal and non-fiscal incentives.
The Haryana government is providing reimbursement of 50% of the applicable Net State Goods and Services Tax (SGST) for ten years.
To boost employment opportunities in the state, a subsidy of INR 48,000 per employee per annum for ten years is also provided.
Rajasthan government is offering a capital subsidy of 25% of investment on plant & machinery, subject to a maximum of INR 50 lakhs.
Governments are also encouraging infrastructure development by providing subsidies to private entities for setting up EV charging stations. Uttar Pradesh Government is offering capital subsidy @20%, a maximum of INR 10 lakh, to businesses who are investing a minimum of INR 25 lakh for the development of charging Stations.
Production Linked Incentive (PLI) Scheme has been launched by the Government of India, providing incentives up to 18% of eligible sales of electric vehicles and their components.
To accomplish the target of 30% electric vehicles by 2030, GOI is also providing various financial incentives to the manufacturers of electric vehicles through the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) policy. FAME India II Scheme has been launched with an outlay of INR 10,000 crore to incentivize demand for EVs by providing upfront subsidies and creating EV charging infrastructure.
With increasing awareness, technological advancements and government support, the electric vehicle industry is paving the way for a revolution in the automobile industry. The government's commitment towards sustainability is going to support companies to become a global brand.
As more Indians embrace the electric revolution, the country inches closer to a future where zero-emission vehicles dominate the roads, ushering in an era of cleaner air, energy efficiency, and economic prosperity.
The government's commitment to sustainability through these subsidies ensures that the electric vehicle industry in India continues to thrive, creating a greener tomorrow for generations to come.
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