Startups in EV ecosystem cheered by govt’s push for e-mobility in budget

Startups in the electric mobility ecosystem have welcomed the government’s push towards promoting electric mobility by providing income tax benefits to buyers of electric vehicles, incentivising manufacturing of components locally and developing the manufacturing hubs for such vehicles and components.

In her maiden budget speech, finance minister Nirmala Sitharaman proposed to introduce an income tax rebate of ₹1.5 lakh for customers of electric vehicles and voiced the government’s intent to develop India as a manufacturing hub of EVs. She also announced reduction in customs duty on import of certain parts of electric vehicles.