India is in the midst of a transformative shift in mobility. With climate imperatives, energy security concerns, and the economic opportunity of new industries, the Narendra Modi government has pursued a comprehensive, multi-pronged strategy to accelerate the adoption of electric vehicles (EVs). From demand incentives and charging infrastructure to battery manufacturing and global investments, a layered policy architecture has emerged to make India a frontrunner in the global EV race. This article evaluates the performance of flagship schemes, highlights data-driven achievements, and situates them in the larger context of India’s industrial and climate ambitions.
FAME-I (2015–2019): The First Step Towards Electrification
The Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-I) scheme, launched in April 2015, was India’s first structured national policy intervention for electric mobility. Implemented under the National Electric Mobility Mission Plan (NEMMP), it ran till March 2019 with a total outlay of ₹895 crore.
During its tenure, FAME-I directly supported the adoption of 2,55,305 EVs, including:
1,51,648 two-wheelers (e-2Ws)
786 three-wheelers (e-3Ws)
1,02,446 four-wheelers (e-4Ws)
425 electric buses (e-buses)
Of the total budget, ₹529 crore was allocated towards technology platforms, pilot projects, and demand incentives, while the rest was used for R&D and awareness programs.
Notably, pilot projects worth ₹158 crore played a catalytic role in establishing:
Testing infrastructure for EV components and batteries.
Centres of Excellence (CoEs) for advanced research in battery engineering, electric drivetrains, and hybrid technologies.
Though modest in scale compared to later interventions, FAME-I was critical in seeding India’s EV ecosystem. It established proof-of-concept for electric mobility in India, validated consumer acceptance, and encouraged the first wave of domestic manufacturing investments. According to the Ministry of Heavy Industries, the scheme also helped shape consumer perception by demonstrating the economic and environmental benefits of EVs.
FAME-I’s biggest achievement lay in laying the groundwork. Without its infrastructure pilots and demand-side incentives, India would not have had the testing ecosystem, consumer trust, or industrial interest needed for large-scale adoption.
FAME-II (2019–2024): Scaling EV Penetration
Building on the foundation of FAME-I, the Government of India launched FAME-II in April 2019, with a much larger outlay of ₹10,000 crore. Unlike FAME-I, which focused on feasibility and pilots, FAME-II was designed as a scaling programme—aimed at mainstreaming EV adoption, creating charging infrastructure, and linking EV growth to industrial policy.
By June 2025, FAME-II had achieved remarkable outcomes:
14,35,065 electric two-wheelers (e-2Ws) supported — the largest beneficiary segment, reflecting India’s commuter-driven mobility demand.
1,65,029 electric three-wheelers (e-3Ws) adopted — strengthening last-mile logistics and shared mobility, where India is now a global leader.
22,644 electric four-wheelers (e-4Ws) supported — signaling a gradual consumer shift in the passenger car market.
5,165 electric buses deployed (with 6,862 committed) — advancing the decarbonization of public transport systems.
8,885 public charging stations installed nationwide — tackling the critical barrier of range anxiety.
These figures represent a quantum leap from FAME-I, particularly in two- and three-wheeler adoption. For instance, EV two-wheeler sales supported under FAME-II are nearly ten times higher than those under FAME-I.
FAME-II’s design embedded strategic policy objectives:
Climate Alignment: EV adoption under FAME-II supports India’s Nationally Determined Contributions (NDCs) under the Paris Agreement. According to NITI Aayog and IEA estimates, EVs deployed under FAME-II could cut over 9 million tonnes of CO₂ annually.
Energy Security: With India importing crude oil worth over $100 billion annually, mass EV adoption—especially in 2W and 3W segments—offers a pathway to reduce fuel imports and mitigate global oil price shocks.
Industrial Policy & Job Creation: Localization norms under FAME-II nudged global and domestic OEMs to invest in Indian manufacturing. Companies like Ola Electric, Ather Energy, Hero Electric, and TVS expanded capacity, while global majors explored local assembly. NITI Aayog estimates that EV adoption under FAME-II has already created 1.5 lakh direct and indirect jobs by 2024.
Charging Infrastructure: By mandating charging networks, FAME-II provided a structural backbone for consumer confidence. With nearly 9,000 charging stations installed, the groundwork is laid for exponential growth.
The consumer impact is equally notable. Delhi, which set a target of 25% EV penetration by 2024, already has 13% of new vehicle sales as EVs, one of the highest among global megacities. Cities like Bengaluru, Pune, and Hyderabad are also witnessing mainstream adoption of e-scooters and shared e-mobility.
Finally, FAME-II also positioned India in the global EV race. India is now the largest market for electric two- and three-wheelers, complementing China’s leadership in four-wheelers and Europe’s dominance in premium EVs.
PM E-DRIVE (2024–2028): Accelerating Mass Adoption
In September 2024, the Government of India launched the PM Electric Drive Vehicle Incentive Scheme (PM E-DRIVE) with a total outlay of ₹10,900 crore, aiming to support over 28 lakh EVs across all categories. As of July 2025, the scheme has already incentivized 15,74,258 EVs, distributed as follows:
13,82,947 electric two-wheelers
3,430 e-rickshaws and e-carts
1,87,881 L5 category three-wheelers
Beyond demand incentives, PM E-DRIVE dedicates ₹2,000 crore for charging infrastructure and ₹780 crore for testing and homologation agencies, underlining a dual focus on mass adoption and technological self-reliance. This policy is not only expanding consumer adoption but also creating pathways for domestic innovation in batteries, drivetrains, and software systems.
By integrating incentives with infrastructure, PM E-DRIVE represents a more holistic EV policy architecture than its predecessors, aligning with India’s twin goals of climate leadership and industrial competitiveness.
Production-Linked Incentives (PLI) for Auto and ACC Batteries
The PLI schemes have emerged as the industrial backbone of India’s EV transformation, ensuring that adoption-led growth is coupled with domestic manufacturing strength.
PLI Auto Scheme: With a projection of ₹42,500 crore investments over five years, the scheme has already attracted ₹29,576 crore by March 2025, generating 44,987 jobs and ₹19,753 crore of incremental sales. Although incentive disbursement remains modest (₹322 crore of the ₹25,938 crore corpus), the long-term effect is expected to be transformative as firms achieve scale. This scheme is already attracting both Indian and global OEMs to deepen their EV production footprint in India.
PLI-ACC Battery Scheme: Approved in May 2021 with a budgetary outlay of ₹18,100 crore for 50 GWh capacity, the scheme is strategically designed to reduce dependence on foreign battery imports. By mid-2025, it had attracted ₹2,145 crore investment, created 1,007 jobs, and enabled Ola Cell Technologies to install 1 GWh of operational capacity. This marks an early but significant milestone toward building domestic cell manufacturing and global supply chain resilience. Given the centrality of batteries in the clean energy transition, this scheme positions India as a future leader in advanced chemistry cells and energy storage systems.
Together, these two PLIs complement adoption-focused schemes (FAME and PM E-DRIVE), ensuring that India does not remain merely a consumption hub but evolves into a global EV and battery manufacturing hub.
Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPCI)
Launched in March 2024, the SPMEPCI reflects India’s strategic attempt to attract global EV manufacturers while balancing consumer access and industrial localization. The scheme offers reduced customs duties on completely built units (CBUs) to encourage market entry, alongside clear conditions for eventual localization.
Detailed guidelines were issued in June 2025, and applications remain open until October 2025. By providing an initial import cushion, India seeks to accelerate domestic availability of high-quality EV cars, expand consumer choice, and simultaneously compel global players to commit to local manufacturing and R&D facilities.
This scheme is expected to catalyze foreign investment, enhance technology transfer, and position India as a global hub for EV passenger car production. By carefully sequencing short-term import flexibility with long-term localization targets, SPMEPCI reflects a calibrated industrial policy—one that balances affordability, availability, and Atmanirbharta.
PM e-Bus Sewa – Payment Security Mechanism (PSM)
The PM e-Bus Sewa scheme, with an outlay of ₹3,435.33 crore, tackles one of the most persistent challenges in India’s public transport electrification journey—payment defaults by Public Transport Authorities (PTAs). Historically, delays and defaults in operator payments have discouraged private participation, leading to underwhelming adoption of e-buses despite policy incentives.
By institutionalizing a Payment Security Mechanism (PSM), the scheme guarantees timely disbursement to operators, thereby derisking investment. This initiative supports the deployment of more than 38,000 e-buses across Indian cities, while also funding training, skilling, and capacity-building programs for municipal and transport officials.
The scheme’s significance extends beyond fleet numbers. It stabilizes the public-private partnership (PPP) model for urban transport, encourages foreign and domestic OEM participation, and sets the foundation for long-term contracts that lower lifecycle costs. In effect, PM e-Bus Sewa represents a systemic reform in the way urban transport is financed and operated in India.
Policy Benefits to India: Strategic Impacts
The cumulative effect of FAME-I, FAME-II, PM E-DRIVE, PLI schemes, SPMEPCI, and PM e-Bus Sewa is a comprehensive EV policy architecture that delivers tangible national benefits:
Energy Security: EV adoption reduces crude oil imports, lowering the current account deficit and insulating India’s economy from global price volatility. By 2030, even moderate EV penetration could save billions in import bills annually.
Climate Commitments: Road transport accounts for ~10% of India’s GHG emissions. EV scaling directly contributes to India’s 2070 net-zero pledge and Nationally Determined Contributions (NDCs) under the Paris Agreement.
Industrial Competitiveness: PLI-linked incentives for auto and advanced chemistry cells are nurturing an integrated value chain in batteries, motors, and power electronics. This positions India as a credible competitor to China, South Korea, and Europe in the EV supply chain.
Job Creation: Over 46,000 direct jobs have already been created under the PLI Auto scheme alone, with multiplier effects expected across ancillaries such as charging equipment, raw material refining, and component manufacturing.
Urban Air Quality: Deployment of 38,000 e-buses promises significant reduction in particulate matter (PM2.5, PM10) emissions in congested cities, directly improving public health outcomes and reducing healthcare burdens.
Technology Leadership: Investment in R&D through Centres of Excellence, testing agencies, and localized battery manufacturing enhances India’s potential to leapfrog into next-generation chemistries and connected vehicle technologies.
From FAME-I to PM E-DRIVE, from PLI Auto to SPMEPCI, India has moved from pilots to scale, and from adoption incentives to manufacturing incentives. The ecosystem is now comprehensive, spanning R&D, production, charging, and consumer adoption. India’s EV policy architecture is no longer fragmented but integrated into the broader vision of Aatmanirbhar Bharat and Viksit Bharat@2047. If executed with continued urgency, India will not only electrify its roads but also claim a central place in the global EV value chain, emerging as a true EV manufacturing and innovation powerhouse.
