Download - The FAME subsidy is working just fine for India's EV sector

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Daybreak

News:Business News

The FAME subsidy is working just fine for India's EV sector

2023-03-17

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A few months ago, a whistleblower alleged that some of the top EV makers in India were misusing the FAME subsidy. The government began an investigation and withheld the subsidy for multiple EV manufacturers.

Ever since, news stories have been reporting how the sale of EVs in India has declining and the FAME subsidy is under the spotlight for all the wrong reasons.

But the government is only trying to correct a past mistake. The impact of the subsidy on the rising penetration of EVs in the country can't be ignored. In fact, the criticism of FAME could actually end up hurting the EV sector in the long run.

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