India Budget 2024: Govt to expand EV infra and develop more entrepreneurship opportunities

India's Union Finance Minister Nirmala Sitharaman on Thursday (Feb 1) delivered the final budget under Prime Minister Narendra Modi's second term. During her budget speech, Sitharaman touched upon the burgeoning electric vehicle(EV) market and remained bullish on it.

The minister said the main emphasis will be on creating a robust manufacturing and charging ecosystem.

"The government will expand and strengthen the electric vehicle ecosystem by supporting manufacturing and charging infrastructure," said Sitharaman.

She added the government will provide entrepreneurship opportunitiesto give a fillip tothe sector.

"Entrepreneurship opportunities to a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenance."

The bullish view on the EV sector by the finance minister will help boost the confidence of the public which is still on the fence about switching to EVs. The lack of charging infrastructure has been one of the biggest deterrents to people taking up EVs.

Additionally, the Indian youth with the requisite technical skills will be able to contribute to developing the ecosystem, leading to more employment generation.

What about subsidies?

While the government kept its cards close to its chest regarding subsidies, experts are of the view that when the annual budget is presented after the Lok Sabha elections, a support package to the tune of Rs 12,5000 crore might be announced.

Notably, the currentFaster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme expires on March 31. The scheme had an outlay of Rs 10,000 crore. So far, the government has extended 13.6 lakh subsidised vehicles under this scheme against the target of 17 lakh vehicles.

(More to follow)