The way forward for investments in the EV space | Explained

The story so far: According to media reports, the government is looking to expand the scope of its electric vehicle policy, announced in March, to include a retrospective effect. The policy announced in March aimed to provide Indian consumers with access to the latest technology and strengthen the EV ecosystem by encouraging healthy competition among EV players by attaining higher volumes of production, economies of scale and lower cost of production. The policy document held India, being the third-largest automotive market in the world, could potentially “lead the global transition” from internal combustion engine to decarbonised electric counterparts. The report also held that India would require “significant investor support” to realise the $100 billion-plus EV opportunity. “If FDI is to reap its potential fully, the focus must be on ensuring that it is towards building a core country, such that the critical components are made here, there is the transfer of technology and local manufacturing is built here,” states Prof Abrol, adding, “If FDI does not enable one to be a core country, you will not be to progress towards an enabling capacity to establish yourself as a core player.