New Delhi: Commerce and Industry Minister Piyush Goyal affirmed on Friday that India’s electric vehicle (EV) sector does not require additional subsidies or incentives, as the existing support structures are sufficient to fuel growth.
During a press event following a meeting with EV sector stakeholders, Goyal emphasized that India’s electric mobility ecosystem is ready to thrive. “There is no need for new incentives; the existing ones are enough to kick-start the ecosystem,” he said, according to Business Standard.
Goyal highlighted key drivers behind the EV transition, including falling battery costs, the rise of battery-swapping systems, and the economic advantages of owning electric vehicles.
His comments echo those made by Union Road Transport and Highways Minister Nitin Gadkari last year, who argued that subsidies were unnecessary due to decreasing production costs and growing consumer adoption of EVs and compressed natural gas vehicles.
At the meeting, Goyal noted that stakeholders were united in their belief that additional subsidies were not needed once the current subsidy regime concludes. “Everyone in the room was unanimous that once the existing subsidy regime comes to an end, none of them require subsidies,” he added.
The discussions also addressed important issues such as safety standards for EVs and the expansion of battery charging and swapping infrastructure.
Last March, the government introduced an EV policy that offers incentives for companies investing at least $500 million in manufacturing units in India. The PM E-Drive subsidy scheme, launched under this policy, provides Rs 10,000 for each electric two-wheeler until March 2025, with the subsidy halved in the subsequent financial year. Electric three-wheelers receive a Rs 50,000 subsidy, which will decrease to Rs 25,000 starting in April.
In addition, several states have introduced their own subsidies to encourage EV adoption, and under the FAME-II scheme, the government plans to establish over 10,700 public charging stations across the country.
