India's central government is set to exclusively incentivize clean mobility solutions with zero tailpipe emissions, such as battery electric vehicles (BEVs), according to Sudhendu Sinha, Programme Director for electric mobility, transport, and infrastructure at Niti Aayog. This policy effectively rules out financial incentives for hybrid vehicles, despite acknowledging their role in improving fuel efficiency and lowering emissions. Sinha clarified that while hybrid vehicles are welcomed and will not be penalized, taxpayer money will be channeled only towards vehicles that do not generate pollution.

A key aspiration for India is to evolve beyond merely being an electric vehicle user to becoming a prominent EV manufacturing hub. To achieve this, Sinha emphasized the critical need for India to stay ahead in innovation and gain control over the entire supply chain, reducing its dependence on other nations, particularly China, for vital materials like lithium and other components essential for EV production. This strategic focus aims to gradually master the intricacies of the manufacturing process domestically.

In pursuit of this goal, significant academic and research efforts are underway within India. Sinha noted that 16 out of 23 Indian Institutes of Technology (IITs) are actively engaged in research and development concerning sustainable mobility, alternative chemistries, battery management systems, and the broader spectrum of telematics and electronics for EVs.

The government has also been instrumental in implementing supportive policies to facilitate the transition to clean vehicles. A notable measure highlighted by Sinha is the rationalization of Goods and Services Tax (GST) for electric vehicles and their multiple components, with levies reduced by six to eight times. This aims to make EVs more accessible and affordable. Sinha cited Norway as a successful precedent, noting that the country, which transitioned to electric vehicles starting in 1995, now sees the majority of its new car sales coming from electric models, despite its historical economic reliance on gasoline.