Get All Access for $5/mo

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.
News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

Indian Venture Ecosystem Poised for Global Ascent: Recovery, IPO Resurgence, and 'Building for Bharat' to Define 2025

India's GDP is poised to scale from USD 4 trillion to USD 8 trillion over the next decade and will offer a playground that is remarkable for both founders and venture capital (VC) firms, said Pranav Pai, Founding Partner and CIO at 3one4 Capital.

News and Trends

Uber Launches Moto Women in Bengaluru, Connecting Female Riders with Female Drivers

Uber Moto Women aims to ensure safety with real-time trip sharing, anonymised contact details, and RideCheck monitoring for irregularities. It also offers 24x7 priority support via Uber's Safety Helpline for women riders and drivers.

News and Trends

Talent, Digital Infra, Policy, and Startups Driving India's GCC Ecosystem

By leveraging its demographic dividend and evolving policies, India is uniquely positioned to become the preferred choice for global enterprises seeking scalability, resilience, and a future-ready operational base.

News and Trends

Key Cybersecurity Trends to Track as Threats Evolve

India has lost INR 11,333 crore to cyber fraud in just the first nine months of 2024. Nevertheless, with increasing cyber threats and public awareness, companies are taking proactive steps to safeguard their networks and devices.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.