The government has also allocated ₹2,819 crore for the Production Linked Incentive (PLI) Scheme, down -19.4% compared to last year, and ₹1,310 crore for the PM E Bus Seva scheme.
In the past, the Union government has introduced several initiatives to support and promote India’s automobile sector, particularly focusing on electric vehicles (EVs). These schemes include the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) Scheme, the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry (PLI-Auto), the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), and the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, among others.
One of the significant measures taken by the government is the FAME-II scheme, launched in 2019 to boost electric mobility. Under this initiative, as of October 31, 2024, the government has allocated ₹8,844 crore, which includes ₹6,577 crore for subsidies and ₹2,244 crore for infrastructure development.
This funding has supported the purchase of over 16.15 lakh electric vehicles (EVs), comprising 14.27 lakh electric two-wheelers, 1.59 lakh electric three-wheelers, 22,548 electric four-wheelers, and 5,131 electric buses. The scheme also extends its support to the development of EV infrastructure, having sanctioned 10,985 electric vehicle charging stations, with over 8,800 of them already in the process of installation.
The FAME scheme, launched to accelerate EV adoption in India through subsidies and incentives, has played a crucial role in boosting the country’s electric mobility ecosystem. However, the recent budget allocation trend indicates a gradual phasing out of the programme. In the previous year, the FAME scheme received Rs 2,058 crore, down from Rs 3,921 crore in the year before, reflecting the government’s shifting priorities in the EV sector.
The FAME-II scheme forms part of the broader efforts by the Indian government to transition the transportation sector towards more environmentally friendly solutions. Alongside this, the government has introduced a Clean Tech manufacturing support programme. As part of this, customs duty exemptions now cover 35 additional capital goods essential for EV battery production.