India Plans To Set Up $5 Billion Fund For EV Adoption The plan is to reduce the high upfront capital expenditure for EV ownership

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

NITI Aayog, reportedly, setting up a $5 billion fund for the adoption of electric vehicles (EV) in the country. As per available resources, the US agency for international development (USAID) is said to provide technical assistance in setting up the fund. The plan is to reduce the high upfront capital expenditure for EV ownership.

As per previous reports, the Indian government is increasingly strengthening its support for EV adoption through its various policies. It is also said that the plans include bolstering EV charging and battery swapping infrastructure, incentives for EV manufacturers and so on.

A US Embassy spokesperson said in a news report was quoted as saying, "USAID under its South Asia regional energy partnership has collaborated with NITI Aayog to set up an electric vehicle financial services facility to advance electric mobility in India. USAID's technical assistance aims at creating enablers for EV financing. The organization would engage with the industry and various financial institutions to help develop a conceptual framework for EV financing and create a carbon asset development methodology, taking advantage of carbon credits and monetization."

While addressing a television event on June 2022, road transport and highways minister, Nitin Gadkari, emphasized the government's efforts to promote the green fuels, so that the cost of electric vehicles will be on par with cost of petrol vehicles. This move also aimed at increase in the EV adoption rate of the country. He also stated that, "There is a lot of scope for startups in the automobile industry. The use of electric vehicles is rising in the country and Pune has the potential to become a transport hub for these vehicles."

As per market studies, the Indian electric vehicle market size was estimated at 167,041 units in 2020 and it is expected to reach a value of $17.3 billion by 2030 with a CAGR of 35 per cent over the forecast period.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

Elon Musk's xAI Claims Its New Grok 3 AI Is Better Than ChatGPT and DeepSeek: 'Seeing the Beginnings of Creativity'

xAI debuted the new AI on Monday, claiming it has 10 times the computational power of Grok 2.

Business Solutions

Get a Lifetime of Powerful PDF Tools That Won't Give You a PDF Headache

Banish frustrating PDF issues forever and just breeze through all of the old problems with editing, formatting, converting, annotating and more.

Business News

How 'Girls Trip' Producer Will Packer Went From Delivering Newspapers to Producing Billions at the Box Office: 'Everything Is Sales'

In a new interview with Entrepreneur, Packer discusses his book, "Who Better Than You?," which was released on Tuesday.

Starting a Business

How to Pick the Right Friends and Family Investors for Your Business

It is only natural for new or young entrepreneurs, who are just embarking on his or her entrepreneurial journey, to approach friends and family.

Growing a Business

This Chef Uses Memes to Call Out the Restaurant Industry — and He's Turning Online Influence into Real-World Change

Chef Eli Sussman discusses what drives him to keep opening restaurants, an unexpected collaboration and his rise to meme royalty.

Growing a Business

How Small Businesses Can Cut Through the Noise and Thrive During Political Transitions

Explores how small businesses can navigate the uncertainty of a political transition, focusing on the importance of maintaining control over key business operations. Additionally, emphasizes the opportunity for growth and advocacy in the face of policy and economic changes.