EV Industry’s Wishlist for the Upcoming Budget: Incentives, Infrastructure, and Tax Reforms
As the upcoming budget announcement looms, the electric vehicle (EV) industry in India is vocal about its needs to sustain and accelerate growth. Here’s an in-depth look at what EV Industry’s Budget Wishlist and what the industry is hoping for:
Note: this content is the rework of a content from Economic Times News
Boosting Incentives for EV Adoption
The EV sector is advocating for the extension and expansion of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, which is critical for the industry’s growth. With the scheme set to expire soon, there is a pressing need to continue and enhance the financial incentives that make EVs more affordable for consumers and viable for manufacturers.
Key Requests:
Extension of FAME II: The industry seeks a longer duration and broader scope for the FAME II scheme.
Increased Subsidies: Proposals include more substantial subsidies and rebates for both buyers and producers to lower the cost barrier.
Developing Robust Infrastructure
One of the significant barriers to widespread EV adoption is the lack of infrastructure, particularly charging stations. The industry is pushing for considerable investments to expand this infrastructure across the country, ensuring that EV users have easy access to charging facilities.
Key Requests:
Charging Network Expansion: Investments to increase the number of charging stations nationwide.
Battery Manufacturing Support: Initiatives to boost local production of EV batteries to reduce reliance on imports and cut costs.
Rationalizing Taxes
The current tax structure is seen as a hindrance to the growth of the EV sector. The industry is calling for a reduction in the Goods and Services Tax (GST) on EVs and a more favorable customs duty regime for EV components.
Key Requests:
GST Reduction: Lowering the GST on EVs from the current 5% to a more manageable rate.
Customs Duty Easing: Reducing duties on essential EV components to encourage domestic manufacturing.
Enhancing Research and Development
To stay competitive and drive innovation, the industry is seeking government support for research and development (R&D). This includes grants and funding for advancements in EV technology and battery development.
Key Requests:
Innovation Grants: Financial support for R&D activities to foster innovation in EV technology.
The EV industry’s budget wishlist is a comprehensive set of requests aimed at creating a conducive environment for electric mobility in India. With these measures, India can not only boost its EV sector but also make significant strides towards sustainability and environmental goals.
The upcoming budget is a critical opportunity for the government to support the EV industry’s growth and align with global trends towards cleaner transportation. As the budget announcements approach, the industry remains hopeful for favorable outcomes.
Stay tuned for updates on the budget and its implications for the EV sector!