The upcoming Union Budget 2024 is anticipated to play a pivotal role in advancing India’s electric vehicle (EV) ambitions, with the Narendra Modi government aiming for electric vehicles to account for 30% of auto sales by 2030.
Expected Budget Initiatives:
- Increased Allocation for EV Expansion: The budget may include significant funding to support the growth of the EV sector. This could encompass investments in manufacturing, infrastructure, and consumer incentives.
- Extension of Subsidy Schemes: The Modi government is expected to extend and possibly enhance existing subsidy programs for electric vehicles. This move aims to make EVs more affordable for consumers and encourage broader adoption.
Supportive Policies and Programs:
India’s push towards EVs has been bolstered by the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) policy, which supports electric two-wheelers, three-wheelers, and four-wheelers. The upcoming budget may allocate around Rs 10,000 crore to this initiative, according to reports from individuals familiar with the discussions.
The Ministry of Heavy Industry, which oversees the FAME scheme, has submitted a plan for review to the Prime Minister’s Office (PMO). A final decision on the proposal will be made closer to the budget announcement, taking into account the fiscal situation.
The Union Budget 2024 is set to be a key driver in shaping India’s electric vehicle landscape. By increasing funding and extending subsidies, the government aims to accelerate the adoption of EVs and achieve its ambitious target for 2030. The strategic investments and policy enhancements proposed could significantly impact the growth and success of India’s EV sector.
