Budget 2024: Govt's push for EV adoption will help boost manufacturing and create employment opportunities

Finance Minister Nirmala Sitharaman in her Interim Union Budget 2024 speech on February 1 stressed on the Government of India’s focus on expanding Electric Vehicle (EV) manufacturing as well as strengthening the supporting charging infrastructure as the country is moving towards the net zero emission target by 2070. "As India moves towards its net zero emission target by 2070, the Government will work towards expanding and strengthening the EV ecosystem as well as develop the charging infrastructure," she said. She added that the government will expand EVs and push for greater adoption of electric public transports like buses with formal payment mechanism.

EV manufacturers say that these initiatives announced by the FM today demonstrate the government's intention to further accelerate EV adoption in the country and also generate significant employment opportunities for the youth. “It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. We believe that as the govt rolls out details of the scheme in the coming days for growing the EV public charging infrastructure, the availability of public chargers across the country will significantly grow and EV companies like ours will find higher market acceptance from its consumers and also attract investor interest. This will also break the ‘range anxiety’,” Dinesh Arjun, Co-founder and CEO, Raptee Energy said.

He adds that the government's support in providing financial assistance and support to EV manufacturing will encourage entrepreneurs to do deeper innovation in the battery management segment and other technologies. “Growth in EV charging infra will also generate employment opportunities for the youth as companies will be on a look out for people with technical know-how of running and maintaining charging infra. EV companies will also enjoy a deeper vendor ecosystem providing battery and other components for building make in India EV vehicles,” he said.

According to Hari Kiran, Co-Founder and COO,eBikeGo, the government's commitment to expand and strengthen the EV ecosystem will significantly boost manufacturing and infrastructure development. “This will emerge as a notable contribution in achieving Net Zero Goals and lays a solid foundation for sustainable mobility and a greener environment. Also, as highlighted by the Honourable Finance Minister, the new age technologies and data are changing the lives of people and businesses. They are also enabling new economic opportunities as India is showing solutions through innovation and entrepreneurship,” Kiran said.

The industry is largely optimistic about measures like the concerted focus of the government on promoting electric mobility through the announcement of greater adoption of e-buses, which will boost sustainable transportation solutions. “However, there are certain areas where we believe the budget could have been more encouraging. For instance, a more robust policy framework for the adoption of electric vehicles (EVs) and announcements on the related infrastructure development would have been more beneficial for the industry. Additionally, greater incentives for EV manufacturing and research and development (R&D) activities would have further accelerated the growth of the EV industry,” Darshan Rana, Chairman and Managing Director, Erisha E Mobility Private Limited  said.

Atul Gupta- Co-founder & Director at e-Sprinto felt that certainly, particulars in regard to the e-mobility mission and encouragement of EV infrastructure were missing in the speech, however, the budget did point towards creating ambitious policies towards adoption of EVs in the public transportation sector. “Since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government's agenda, and we do expect supporting policies to follow soon," Gupta said.

Also Read: Budget 2024: FM Sitharaman presents 10 top achievements of Modi government in last 10 years