India’s new EV policy allows imports from any country, including China: Official.

Syllabus: GS-III; Subject: Environment, Ecology and Disaster Management; Topic: Indian Initiatives, efforts and Commitments, Issue: EV Policy.

Context: India’s new EV policy allows imports of electric vehicles from any country, including China.

Policy Includes:

  • Lowering import taxes on certain electric vehicles.
  • Car manufacturers must commit to investing at least $500 million and commence domestic manufacturing within three years to benefit from the tax reduction.
  • Aim: To encourage investment and production of electric vehicles within India.
  • Impact: It could potentially increase the availability of electric vehicles in the Indian market, including those from Chinese manufacturers.

Prelims Connect (Policies/Schemes/Programs)

 New Electric Vehicle Policy 2024:

✔       Customs duty cut to 15%.

✔       Minimum Investment required: Rs 4150 Cr

✔       No limit on maximum Investment

✔       Timeline for manufacturing: 3 years for setting up manufacturing facilities in India, and to start commercial production of e- vehicles, and reach 50% domestic value addition (DVA) within 5 years at the maximum.

✔       Domestic value addition (DVA) during manufacturing: A localization level of 25% by the 3rd year and 50% by the 5th year will have to be achieved

Key Benefits:

✔       Drives innovation and local manufacturing.

✔       Reduces oil imports, pollution.

✔       Aligns with emission reduction goals.

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