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Below the Quote on Budget Expectation  by Harry Bajaj, Founder and CEO, Mobec

"As we approach the upcoming Union Budget, India’s electric vehicle (EV) sector stands at a pivotal juncture. The sector has grown remarkably over the last year thanks to 100% FDI, new manufacturing hubs, improved charging infrastructure, and advantageous laws and incentives. The government’s proactive stance, particularly through the production-linked incentive (PLI) scheme, has significantly boosted the manufacturing of EVs, components, and batteries.

According to a study by the Centre for Energy Finance (CEEW-CEF), the Indian EV market is poised to become a $206 billion opportunity by 2030. This highlights the importance of continued government support to ensure sustainable and rapid growth. The FAME II scheme was instrumental in setting the foundation for EV adoption in India. With its conclusion in March 2024, the interim EMPS scheme’s reduced subsidies have posed challenges for the industry. As a result, we are looking forward to the introduction of FAME III, which will provide subsidies comparable to FAME II, to revitalise the industry and develop charging infrastructure nationally.

Furthermore, the future budget should prioritize incentivizing firms to use EVs for last-mile delivery operations. Developing robust manufacturing capacity to fulfil expanding demand is equally important. Although progressing, India’s EV ecosystem is still in its early phases and requires a competent workforce for production and after-sales services. Large-scale upskilling and reskilling programs are required to provide the workforce with the skills needed for this changing business. We expect that the budget will include considerable funding for these programs, allowing India to continue to lead in the global transition to clean mobility. The government can help unleash the full potential of the EV industry by supporting innovation and infrastructure development, which drive economic growth and environmental sustainability.

Sustainability must remain at the heart of this growth. By championing EV adoption and bolstering the necessary infrastructure, we not only reduce our carbon footprint but also set the stage for a greener, more sustainable future. The upcoming budget is a critical opportunity to solidify India's position as a leader in the global transition to clean mobility."

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