“The budget is a positive push for adoption of Electric Vehicles in India and is in line with the series of steps taken and announcements in that direction. Namely on 4 counts – 3 direct and one indirect aspect are important from that perspective.While the total cost of ownership was always in favour of EV, the announcement in the reduction of GST rate on electric vehicles from 12% to 5% reduces the upfront higher cost as against an ICE engine and improves the buying decision in favour of EVs. The additional income tax deduction of ₹1.5 lakh on interest on loans taken to purchase electric vehicles is a bonus and the industry had not anticipated that. Credits to the government for this innovative idea to push for EV.A day ahead of the budget 2019, the government lowered customs duty on import of parts and components. This will drive domestic assembling of electric vehicles, which today is plagued by Chinese imports and is actually hurting the EV industry.The EV industry primarily belongs to start ups and will not be the domain of large monoliths. The push to simply and support the Start Up ecosystem will in effect push the EV growth a lot faster. “
