Wired for change: What the EV sector expects from the upcoming budget?
In a pivotal moment for India’s electric vehicle (EV) sector, stakeholders are eagerly anticipating transformative reforms and financial incentives in the upcoming budget. With a global push towards sustainable transportation, the Indian EV industry is calling for strategic measures to accelerate its growth.
Dinesh Arjun, CEO & Co-founder of Raptee, emphasizes the sector’s plea for a substantial reduction in Goods and Services Tax (GST) rates, specifically targeting lithium-ion battery packs and cells. This move, from 18% to 5%, is seen as crucial for the sector’s expansion. Arjun also highlights the need for reduced import duties on electronic components to encourage investment and build a robust industry.
Ankit Kedia, Founder & Lead Investor at Capital A, stresses the necessity of clear policies regarding battery standardization. Anticipating a revisit of GST rates on EVs, batteries, and components, Kedia emphasizes the importance of policy clarity in fostering industry growth.
Varun Goenka, Co-Founder and CEO of Chargeup, suggests that the focus should extend beyond subsidies for electric two and three-wheelers. He calls for a reduction in GST applicability on EV products and services, along with their inclusion in the priority sector lending list to attract investments and expedite EV adoption.
Akshit Bansal, CEO & Founder of Statiq, urges the government to align policies with net-zero goals and sustainable development. He advocates for Production-Linked Incentive (PLI) schemes tailored for EV charging companies, tax reforms supporting the industry, and measures promoting a circular economy through recycling and eco-friendly manufacturing.
Pragya Goyal, CEO & Co-Founder of Vegh Automobiles, welcomes the proposed FAME 3 incentive scheme for EV manufacturing. She emphasizes the need for trade agreements, logistics sector bolstering, and research investments to enhance production and address global constraints in the lithium supply chain.
As India stands at a critical juncture in its electric mobility journey, these expectations reflect the industry’s call for comprehensive reforms and incentives to drive sustainable and cleaner automotive solutions. The upcoming budget is anticipated to play a pivotal role in shaping the trajectory of India’s EV sector.