Prime Minister Narendra Modi’s visit to the United States last month underlined how diverging the two countries’ electric vehicle (EV) strategies are. While the USA has extended its EV support policies through the landmark Inflation Reduction Act (IRA), India, on the other hand, recently cut subsidies for electric two-wheeler EVs (E2W) under the flagship demand incentive scheme, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II). This decision could prematurely halt the growth of the EV sector in India. Instead, the government should be ramping up subsidies to ensure a successful decarbonization of its transport sector.
