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