India’s Big EV Move: Centre Plans to Electrify Government Vehicles

As India marches towards a sustainable future, the central government is taking significant steps to accelerate the adoption of electric vehicles (EVs) across the nation. One of the most ambitious plans under consideration is the electrification of the government’s own transport fleet, signaling a decisive push towards zero-emission mobility.

At the recently concluded FICCI National Conference on Electric Vehicles, Tarun Kapoor, Advisor to the Prime Minister’s Office, outlined this transformative vision.

“From the government side also, we now want to focus on driving this sector so that not only do we have more and more electric cars, buses, and two-wheelers on the road, but we also become a manufacturing hub for the world,” Kapoor emphasized.

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A Strategic Shift: Government Fleets Go Electric

The government aims to lead by example, transitioning its own fleet of vehicles to electric. This initiative will not only reduce emissions but also act as a powerful endorsement for the EV industry, encouraging private sector adoption.

To bolster state-level efforts, the Centre plans to offer interest-free loans to help states electrify their government fleets. By addressing financial barriers, this initiative aims to ensure a smooth transition to EVs across all levels of governance.

In a significant move, the government also plans to electrify all ambulances across the country.

“The Prime Minister has said that ambulances should be converted… I requested that industry must develop some good ambulances. That is one area where the government would provide funds,” Kapoor added.

This shift towards electric ambulances could set a global benchmark, demonstrating India’s commitment to sustainable healthcare solutions.

Policy Interventions to Drive EV Adoption

The government is actively addressing structural challenges to promote EV adoption. Kapoor highlighted the importance of reducing the goods and services tax (GST) on EV batteries and charging infrastructure, which remains a critical bottleneck for consumers and manufacturers. Lower GST rates could significantly enhance affordability and accessibility, boosting demand for EVs.

Additionally, the Centre is focusing on infrastructure development to support the growing EV ecosystem. Subsidies for setting up two- and three-wheeler charging stations and covering up to 80% of back-end infrastructure costs under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme reflect the government’s comprehensive approach.

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India’s Vision: Becoming a Global EV Hub

Earlier this month, Union Commerce and Industry Minister Piyush Goyal stressed the need for a swift transition to electric mobility at the Bharat Mobility Global Expo 2025. He urged Indian industry leaders to collaborate with global players from Germany, Japan, and Korea to establish India as a manufacturing hub for EVs.

The PM E-DRIVE scheme, announced in September with a budget of INR 10,900 crore, further demonstrates the government’s commitment to boosting EV production and adoption. This program includes subsidies and incentives designed to make India a global leader in EV innovation and production.

A Step Towards Sustainability

These efforts come at a time when the world is watching India’s transition to clean energy and sustainable mobility. The government’s proactive measures, from electrifying fleets to providing subsidies, underscore its resolve to achieve the ambitious goal of becoming a 100% electric vehicle nation.

The electrification of the government fleet is not just about reducing emissions—it’s a symbolic and practical step toward redefining India’s transportation landscape. With continued policy support, industry participation, and consumer awareness, India is poised to become a global leader in the EV revolution.

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Challenges AheadThe Indian government is accelerating its EV push with plans to electrify its transport fleet, offer interest-free loans to states, and subsidize EV infrastructure.

Despite these promising steps, challenges remain. The high cost of EVs, limited charging infrastructure, and consumer hesitancy due to range anxiety are significant hurdles. However, with robust government backing, innovations in battery technology, and industry collaboration, these challenges can be overcome.

As India accelerates its journey towards sustainable mobility, the central government’s commitment to electrifying its fleet is a bold statement of intent—one that promises a cleaner, greener, and more prosperous future for all.

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