The Indian government plans to offer incentives to electric vehicle manufacturers and sellers in India to adapt to greener alternatives. Niti Aayog CEO Amitabh Kant stated that the incentives are expected to come in the form of lower road taxes and other benefits. The move is expected to enable the automobile sector to play a major role in contributing to India’s GDP and job creation.
Kant highlighted that automobiles along with the automobile component industry is one of the key drivers of India's economic growth, which contributes around 7.2 per cent to the GDP. Based on study reports, by 2027-28, the cost of EV battery will come down from $273 per kilowatt hour to $73 per kilowatt hour. Kant added, “If you take Indian demand into consideration, then it will come down to $60 per kilowatt hour.”
A recent report from Niti Aayog estimated that accelerated adoption of electric and shared vehicles could save $60 billion in diesel and petrol costs by 2030. Speaking more about government’s support in electric vehicle development, Kant added, “The government will further act as a catalyst so that automobile sector continues to play a major role in India's GDP and job creation as well as in exports.”
