Simple tax and more push': What the EV industry expects from Finance Minister Nirmala Sitharaman
The Union Budget 2025 is a pivotal moment for India’s electric vehicle (EV) industry. With the government aiming for 30% EV penetration by 2030, there is a pressing need to address the challenges faced by manufacturers, consumers, and infrastructure developers. Ahead of the budget presentation, many industry leaders shared their expectations for policy interventions that could drive the sector toward sustainable growth.
'Simplify Tax Structures and Incentivise Manufacturing'
According to Dinkar Agrawal, Founder, CTO & COO, Oben Electric, “simplifying the GST structure with a uniform 5% tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth".
"Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing. Performance-linked incentives for battery innovation and indigenous component manufacturing can further strengthen India’s Make-in-India push, positioning the country as a global leader in EV technology,” Agrawal said.
"Streamlined tax policies could also bridge affordability gaps for consumers. Initiatives such as reduced interest rates on EV loans and targeted subsidies would make EVs more accessible."
