What did Finance Minister Nirmala Sitharaman say about FAME Scheme and EV ecosystem in the Interim Budget?

In her presentation of the Interim Budget 2024 on Thursday, Union Finance Minister Nirmala Sitharaman declared that the Indian government will persist in advancing the growth of electric vehicles within the nation by providing manufacturing and infrastructure for EV charging. He stated that the nation will see an expansion of the electric vehicle ecosystem shortly.

Sitharaman also stated during her budget speech that the goal would be to increase the use of electric buses by implementing payment protection measures. However, no comprehensive statement addressing the issues and concerns facing the Indian auto sector has been made. For the past few years, the Indian government has been concentrating on the nation's development of electric vehicles. Additionally, the government is also emphasizing the development of other clean and green powertrain solutions.

Sitharaman has not given any clear indication about any relaxation for the automobile manufacturing industry or the electric vehicle industry. Speaking about the charging infrastructure of electric vehicles, he said-

“There are entrepreneurship opportunities for a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenance.”

A major expectation of the auto industry was the extension of the FAME scheme to further support the electric vehicle industry in the country. However, there was no mention of it in the budget speech. The Indian government has previously made tariff changes to promote the electric vehicle industry. No significant announcements were made for the auto industry at large in the interim budget.