Is India Ready for an Electric Revolution? Piyush Goyal Thinks So

As electric vehicles (EVs) take the global stage, is India prepared to lead the way in a cleaner, cost-efficient future?

Union Commerce and Industry Minister Piyush Goyal certainly thinks so—and he’s calling on the industry to act fast. At the Bharat Mobility Global Expo 2025, Goyal issued a strong appeal for a quicker shift to electric mobility, aiming to transform India into a 100% EV-driven nation.

But can industry players meet the challenge, and what could this shift mean for the future of India's economy and environment? Let's explore with TICE.

"Transition Faster" — The Economic Incentive

Goyal emphasized that scaling up EV production and adoption is the only way to tackle the barrier of cost efficiency, a challenge that has historically slowed EV adoption. He noted that industries still relying on petrol and diesel in their production cycles should focus on a swifter transition to electric options.

“We are not mandating anything, but we are encouraging faster transition,” he said. "The moment we achieve scale, we can overcome the cost-effectiveness barrier.”

Scaling, as Goyal pointed out, is essential. The EV industry in India, though growing, is still at a nascent stage where achieving economies of scale could make electric vehicles more accessible and affordable. As industries transition, a significant shift in production volume could potentially reduce manufacturing costs, making EVs a more viable option for the mass market. This message was a clarion call to industry leaders to seize the moment, accelerate their EV initiatives, and contribute to a sustainable future.

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Encouraging Global Partnerships and Local Manufacturing

Goyal also appealed to government bodies, including the Department for Promotion of Industry and Internal Trade (DPIIT), to foster international collaborations by inviting global leaders in EV technology, particularly from countries like Germany, Japan, and Korea, to establish production units in India. By collaborating with these international players, India can benefit from advanced technologies, operational efficiencies, and a broader base of expertise. Such partnerships could bridge the current technological and knowledge gaps within the industry and enable a smoother, faster transition.

These collaborations can also bolster India’s “Make in India” initiative, a campaign designed to position India as a global manufacturing hub. Encouraging global EV players to establish operations in India is a strategic move aimed at developing local manufacturing capabilities, generating employment opportunities, and reducing dependency on imports.

India’s EV Sector Gets a Boost with PM E-DRIVE Scheme

India’s EV sector has been gaining significant momentum, partly fueled by recent government initiatives like the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, launched by the Ministry of Heavy Industries (MHI). With an allocation of INR 10,900 crore, this scheme surpasses the initial outlay of the previous FAME-II scheme, marking a significant increase in government support for the EV sector.

Under the PM E-DRIVE scheme, the central government has committed to subsidizing up to 80% of backend infrastructure development costs, including charging stations, which have often posed a critical hurdle in widespread EV adoption. This subsidy specifically targets the setup of two- and three-wheeler charging stations, aiming to make EV charging more accessible and convenient. As electric two- and three-wheelers are among the most popular vehicle categories in India, this infrastructure support can drive substantial adoption across the country.

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A Phased Approach to Local Manufacturing

The government’s commitment to building a robust EV ecosystem goes beyond infrastructure; the Centre is reportedly working on a phased manufacturing program (PMP) designed to support local manufacturing of EV components. This phased approach aims to reduce dependency on imported parts and encourage homegrown solutions, thereby ensuring the EV industry’s growth remains rooted in India’s industrial landscape.

Moreover, the PM E-DRIVE initiative incorporates learnings and data from the earlier Electric Mobility Promotion Scheme (EMPS) 2024. By building on past experiences and successes, the PM E-DRIVE scheme aims to address gaps in previous programs, ensuring a smoother, more integrated pathway toward electrification.

India’s EV Roadmap

India's vision of achieving 100% EV adoption is ambitious but achievable with sustained government support, industry participation, and strategic international partnerships. With the PM E-DRIVE scheme set to replace FAME-II, industry experts believe that India is moving closer to building a self-sustaining EV ecosystem that could become a global leader in electric mobility.

However, this transition won’t be without its challenges. High battery costs, a limited charging network, and the need for robust policy support remain hurdles. But with initiatives like PM E-DRIVE and a clear call from leaders like Goyal, there is an optimistic outlook that these challenges can be overcome, and India can emerge as a formidable player in the global EV landscape.

The EV revolution in India is not just about adopting cleaner transport but also represents a larger shift towards sustainable industrial practices, self-reliant manufacturing, and technological innovation. As the industry gears up to meet these ambitious targets, India’s journey toward an electric future could serve as a powerful example for other emerging economies looking to balance growth with sustainability.

A Call for Unified Action

As Minister Goyal’s address highlights, the shift to electric mobility is not merely a choice but a necessity for the industry’s future and India’s commitment to sustainability. By taking proactive steps, scaling production, and fostering global partnerships, India is well-positioned to make this vision a reality. With the government’s support through incentives, schemes, and phased manufacturing plans, the onus is now on industry players to embrace this transition and drive India’s journey towards a cleaner, greener future.

In Goyal’s words, achieving scale will "cross the hump of cost-effectiveness." For industry leaders and new entrants alike, now is the moment to act and play a transformative role in shaping India’s electric mobility landscape.

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