Examine the role of government schemes such as FAME and PLI in accelerating India's electric vehicle adoption. What structural barriers continue to limit their impact?

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Introduction

India’s transition to electric mobility is supported by flagship schemes like FAME (Faster Adoption and Manufacturing of Electric Vehicles) and PLI (Production Linked Incentive), aimed at boosting demand and domestic manufacturing.

Role of FAME Scheme

Demand-side incentives: Subsidies reduce upfront EV costs, especially for 2-wheelers, 3-wheelers, and public transport buses.
Charging infrastructure support: Promotes installation of public charging stations.
Market creation: Encourages early adoption and fleet electrification (e.g., e-buses).

Role of PLI Scheme

Domestic manufacturing boost: Incentivises Advanced Chemistry Cell (ACC) batteries and EV components.
Supply chain development: Reduces import dependence, particularly on lithium-ion batteries.
Attracting investment: Encourages global and domestic firms to invest in EV ecosystem.

Achievements

Rise in EV sales, especially in 2W and 3W segments.
Expansion of charging infrastructure and localisation efforts.
Improved investor confidence in EV sector.

Structural Barriers Limiting Impact

High upfront cost: Despite subsidies, EVs remain costlier than ICE vehicles.
Inadequate charging infrastructure: Uneven distribution, range anxiety persists.
Battery dependency: Continued reliance on imported raw materials like lithium and cobalt.
State-level policy inconsistencies: Variation in incentives and implementation delays.
Grid and power issues: Renewable integration and stable electricity supply remain challenges.
Limited focus on R&D: Technological gaps in battery innovation and recycling.
Awareness and behavioural barriers: Consumer hesitation due to performance and resale concerns.

Conclusion

While FAME and PLI have catalysed India’s EV ecosystem, addressing structural bottlenecks in infrastructure, supply chains, and policy coherence is essential to achieve large-scale, sustainable EV adoption.

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