| Syllabus: GS-III, Subject: Economy, Topic: Trade and External Sector, Issue: EV scheme |
Context: India unveils a new EV policy, easing import duties for select EV imports.
Key Provisions:
- Policy allows initial import of EV passenger cars at 15% duty for five years.
- Manufacturers must operationalize facilities within three years and achieve minimum domestic value addition (DVA).
| India’s EV policy:Aim: To promote EV manufacturing in India and lead global transition to electric vehicles.
1.     Seeks significant investments to produce advanced EVs domestically. 2.    The policy fosters competition among manufacturers to increase production volumes and achieve economies of scale. 3.    Anticipated outcomes ➢      Reduced EV production costs, ➢      decreased crude oil imports, ➢      improved trade balance, and ➢      environmental benefits such as reduced air pollution. |
