Working Paper

Comparative evaluation of non-fiscal incentives to promote electric vehicles across Indian states and union territories

To support the national-level push for electric mobility, many Indian states and union territories have established or are developing their own electric vehicle (EV) policies. This is important because state EV incentives can play a key role in EV market development by complementing national promotion efforts and by serving as a bridge between national- and state-level policies. This paper reviews non-fiscal incentives proposed and adopted in Indian states’ EV policies. It is focused on consumers, and the authors review incentives for EV consumers while they are driving their vehicles and support for charging infrastructure installation.

Use of non-fiscal incentives varies significantly among the states. Maharashtra and West Bengal have the most, four each, while states like Goa, Uttar Pradesh, and Uttarakhand do not have any non-fiscal incentives. Green zones and preferential parking for EVs are common non-fiscal consumer incentives proposed by some state governments, and commonly considered non-fiscal incentives to promote installation of charging infrastructure are land allocation for charging points and modification of building bylaws. State EV policies also provide a variety of incentives for installing private EV chargers and establish targets for installing public chargers in densely populated areas and at regular intervals on high-traffic roads.