Electric Vehicles in India

India is an oil deficient country. It is thus forced to import most of the crude oil it uses ( nearly 80%) from other countries. This creates a problem for India, both fiscally and for domestic security. The government is exploring various methods like ethanol blending, improved oil recovery from Indian Oil fields and adding new fields to production in order to lessen Indian dependence on foreign oil. One such method is increasing the use of electric cars on Indian roads.

Advantages of using Electric cars

  • An electric car relies on a source of electricity which may be solar, hydro or even coal. All these sources are more readily available in India and thus, better for Indian policy planning.?
  • Electric cars, on average, are more efficient and cleaner than diesel-powered cars.
  • While most international automobile makers are already established entities, electric cars are an upcoming feature and hence, by moving early, India can emerge as an electric car hub. This would not only increase India’s technical edge but also add jobs and economic growth to the country.

What the government is doing to encourage electric car growth?

The Indian Government has, in a bid to encourage the adoption of electric vehicles in India, has asked the Goods and Services Tax (GST) Council to reduce the GST rate on electric vehicles from 12% to 5% and on EV chargers from 18% to 5%. The GST Council has agreed to implement the same from August 1.

The GST Council has also waivered GST on the hiring of electric buses by local authorities.


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