ELECTRIC VEHICLES

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The Government of India has made significant strides in promoting sustainable mobility, placing special emphasis on affordable and eco-friendly public transportation options for the masses. A cornerstone of this initiative is the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme, aimed at accelerating the transition to electric mobility. Since its inception in 2015, the scheme has evolved into a robust framework for incentivizing electric vehicles (EVs) and establishing essential infrastructure, ushering in a greener and more sustainable transportation era.

The first phase of FAME was a foundational step, rolled out for two years starting April 1, 2015. Following its success, the scheme’s second phase, FAME-II, was launched in 2019 with an ambitious outlay of ₹11,500 crore. Beyond financial incentives, the FAME-II scheme has supported pivotal policy measures, including reducing the GST on EVs and facilitating the formulation of state-specific EV policies. A noteworthy aspect of FAME-II is its phased manufacturing program, which encourages domestic production of EV components and reduces reliance on imports. With an expenditure of ₹8,844 crore under FAME-II—comprising ₹6,577 crore for subsidies, ₹2,244 crore for capital assets, and ₹23 crore for other expenses—the government has demonstrated its unwavering focus on fostering an EV ecosystem. The scheme’s progress has positioned India as a key player in sustainable mobility, significantly reducing the nation’s carbon footprint while creating new economic opportunities in the EV sector. As India accelerates its transition to green mobility, the success of FAME-II sets the stage for deeper investments in clean energy transportation solutions. However, to fully capitalize on these gains, there is a need for consistent policy support, rapid infrastructure development, and increased public awareness about the environmental and economic benefits of EVs. With the right blend of innovation, collaboration, and governance, India can pave the way for a sustainable transportation future that resonates globally.

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