According to the Economic Survey 2023, the car sector will play a crucial role in the transition to green energy, and the domestic EV market is predicted to develop at a CAGR (compound annual growth rate) of 49% between 2022 and 2030, with annual sales of 1 crore units by 2030.

It is estimated that by the year 2030, the electric vehicle industry will have directly and indirectly employed five crore people. According to the Survey, ‘the government has taken a number of initiatives to encourage and nurture this development.’
 

In particular, the production-linked incentive (PLI) programme for advanced chemical cells was emphasised as a factor that could hasten the introduction of EVs into widespread use. The budget for this programme is Rs 18,000,000,000 and it will be in effect from Fiscal Years (FYs) 23 through 27.
 

The government's Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme, which runs from 2019 to 2024 with a budget outlay of Rs 10,000 crore, has reportedly incentivized 7.1 lakh EVs, sanctioned 7,210 e-buses, of which 2,172 e-buses have been deployed as of December 2022, according to the Survey.

Recent laws on battery safety and local value addition have reportedly hurt EV and battery manufacturers, as the shorter schedule to certify their goods could harm short-term production and sales, as reported by ET last month.

After a series of fires this summer involving electric vehicles, the Ministry of Road Transport and Highways revised the AIS156 criteria, a severe testing and certification standard, to improve safety.

This change will go into effect in two stages, the first on December 1 and the second on April 1. During this first stage, necessary functionality will be included, such as battery traceability and cell spacing.
 

When it comes to qualifying for the FAME-II subsidy payment, the Ministry of Heavy Industries also released new safety testing standards in the month of November.

The Economic Survey also argued for a 'well constructed multi-dimensional mineral strategy' to lessen India's reliance on overseas suppliers of rare-earth elements necessary for electric vehicle (EV) engines.

More minerals are needed to produce solar photovoltaic (PV) plants, wind farms, and electric vehicles (EVs) that are used to produce conventional energy. Onshore wind plants use nine times as many minerals as gas-fired plants, and a typical electric car needs six times as many.