Appendix 4: Government Policies and Incentives for Electric Vehicles in India

Prof.(Dr.) D G Mahto, Founder & CEO -

Indian government policies for EVs focus on demand incentives (FAME II, PM E-DRIVE), tax breaks (low GST, income tax deduction), and boosting domestic manufacturing (PLI scheme, import duty cuts). Key incentives include direct subsidies on purchase (per kWh), lower GST (5% for EVs/chargers), tax deduction on EV loan interest (Sec 80EEB), and support for charging infra, with recent schemes like PM E-DRIVE targeting two-wheelers and public transport. 
Central Government Schemes & Policies:
  • FAME (Faster Adoption and Manufacturing of Electric Vehicles): India's main scheme offering demand incentives (subsidies) based on battery size (kWh) for 2/3/4-wheelers and e-buses, supporting adoption and infrastructure.
  • PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement): A newer scheme (Oct 2024 - Mar 2026) with ₹10,900 crore for subsidies on e-2Ws, 3Ws, e-buses, ambulances, & trucks, plus charging infra, using e-vouchers.
  • Production Linked Incentive (PLI) Scheme: A large allocation (₹26,000 Cr) to encourage local manufacturing of EVs, Advanced Chemistry Cell (ACC) batteries, and components.
  • GST Reduction: GST on EVs slashed to 5% (vs. 12% earlier), and 5% on chargers (vs. 18% earlier).
  • Tax Deduction (Section 80EEB): Up to ₹1.5 lakh deduction on interest paid for EV loans.
  • Import Duty Cuts: Reduced duties on key battery components to lower production costs. 
State-Level Incentives (Examples):
  • Road Tax/Registration Fee Waivers: Many states offer full or partial exemptions.
  • Purchase Subsidies: Additional state-specific subsidies on top of central ones.
  • Scrappage Incentives: Incentives for de-registering old petrol/diesel vehicles.
  • Charging Infra Support: Various states promoting public charging networks. 
Focus Areas & Targets:
  • Public Transport: Electrification of buses for public transport.
  • Commercial Vehicles: Support for e-rickshaws, ambulances, and trucks.
  • Domestic Manufacturing: Building local capacity for batteries and vehicles. 
These policies aim to reduce upfront costs, build charging infrastructure, promote sustainable manufacturing, and achieve national targets for EV adoption. 
Prof. (Dr.) D. G. Mahto: A Visionary Director, Professor, Leader & Educator With over 25 years of excellence, Prof. (Dr.) D. G. Mahto is a Director, Professor, Philanthropist, HEI Builder, writer, consultant, reviewer, and career advisor at "Career Education for Success—Discover, Apply, Succeed!" He has empowered individuals, brands, and institutions through insightful content, innovation, and mentorship. Holding a Ph.D. in Engineering from NIT Jamshedpur, he has pursued Post-Doctoral Programs at IITs, NITs, and IIITs, reinforcing his expertise. A member of prestigious global organizations like NPA (USA), IET (UK), ASME, IAENG, and MRSI, he actively contributes to engineering, research, and education. An accomplished writer and researcher, he shares knowledge via Career Education Success Now, Career Edus, and Discover Knowledge Wisely. His vision integrates technology, innovation, and leadership, bridging gaps between aspirations and achievements. Connect with him for insights into education, research, and professional growth.

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