The policy introduces fiscal incentives for electric vehicles, exemptions from road tax and registration charges for eligible vehicles, scrappage incentives for older vehicles, a significant expansion of charging infrastructure, and a phased transition towards electric mobility across various vehicle categories. The government has also announced a proposed investment of around ₹15,000 crore to support the development of the EV ecosystem during the policy period.

“The Policy reinforces the role of clean mobility as a key driver of Delhi’s future economic growth and sustainable urban development. By providing greater policy certainty, it is expected to improve the investment climate, accelerate innovation in electric mobility technologies, expand domestic manufacturing, and create employment across the EV ecosystem. At the national level, the Policy aligns with India’s broader objective of strengthening globally competitive manufacturing through the Make in India initiative”, said Rajeev Juneja, President, PHDCCI.

The policy extends well beyond promoting electric vehicle adoption and has the potential to stimulate investments across multiple sectors, including battery manufacturing, charging infrastructure, renewable energy integration, power distribution, electronics, automotive components, software solutions, fleet management, financing, recycling and circular economy services.

Key Highlights & Provisions

The Delhi EV Policy 2.0 (running through 2030) introduces ambitious subsidies, scrappage benefits, and stricter mandates to promote greener transport.

1.      Tax Exemptions: 100% waiver on road tax and registration fees for EVs priced up to ₹30 lakh (ex-showroom).

2.      Purchase Subsidies: Incentives of up to ₹30,000 for electric two-wheelers and up to ₹50,000 for three-wheelers.

3.      Scrappage Incentives: Up to ₹1 lakh incentive for scrapping old BS-IV or older cars.

4.      Deadlines for ICE Vehicles: No petrol motorcycles/scooters can be registered after March 31, 2028, and new CNG auto-rickshaw registrations are set to stop at the end of 2026.

5.      Charging Network: Expanded infrastructure mandates that require every EV dealership to host public charging stations.

“The planned expansion of public charging facilities and battery-swapping infrastructure is expected to stimulate investment across multiple segments of the electric mobility ecosystem. Opportunities are likely to emerge for infrastructure developers, private investors, technology firms, and start-ups engaged in EV-related services. As electric vehicle adoption accelerates, demand is also expected to rise for advanced battery technologies, power electronics, semiconductors, charging hardware, digital payment platforms, predictive maintenance applications, and intelligent energy management solutions”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.

The policy will deliver important macroeconomic benefits through reduced dependence on imported fossil fuels, lower urban emissions, improved public health outcomes and increased private investment in future-ready industries. The policy is also expected to encourage innovation in electric mobility technologies while supporting India’s commitments towards sustainable development and the transition to a low-carbon economy.

Further, the policy aligns with several national initiatives, including the Production Linked Incentive (PLI) Schemes for the automobile and Advanced Chemistry Cell (ACC) battery sectors, the National Electric Mobility Mission and India’s target of achieving net-zero emissions by 2070. Together, these initiatives can strengthen domestic value addition, enhance supply chain resilience and improve India’s competitiveness in the global EV market.

PHDCCI works closely with policymakers, and industry stakeholders to support effective implementation of the policy and facilitate the development of a robust, competitive and sustainable electric mobility ecosystem that contributes to economic growth, industrial transformation and environmental sustainability.

“India’s Proud ! the drone ecosystem is set to receive a ₹3,000-crore ($360-million) booster shot, with the Centre planning a new production-linked incentive (PLI) scheme for the industry; the news was a wisper until yesterday is now in public domain in major dailies.”

Key Analytics and Expectations:

– Growth Projections: The Indian drone manufacturing industry is expected to reach Rs 900 crore by 2025, growing at a CAGR of 22.15% during 2024-30.

– Job Creation and Skill Development: The expanded PLI scheme will likely create new job opportunities and drive skill development in drone manufacturing, maintenance, and operation.

– Increased Competitiveness: The incentive will enable Indian drone manufacturers to compete globally, improving export prospects and attracting foreign investment.

– Diversified Applications: The drone industry’s growth will lead to increased adoption in various sectors, including border surveillance, rescue and disaster management, logistics, data processing, and traffic management.

Industry Reaction:

Aadhar Bansal, Director of Nexgen Exhibitions, notes that the “Make in India” movement and the government’s visionary PLI scheme have already given the industry a huge boost, attracting significant foreign investment.

Dr. Shankar Goenka , Managing Director of WOW Go Green makers of Krishi Viman Drones; the leading drone manufacture in the country in the domains of agriculture in general and farming in particular, strongly believes that it’s a befitting move towards sustainability of the Drone Industry and making India the Drone Hub; and will be a step forward towards Viksit Bharat.

 Government Support:

The government’s efforts to promote the drone industry include:

• More Liberal Policies:Simplified regulations and policies to encourage innovation and growth.

• Drone Shakti: A production-linked incentive scheme to boost domestic manufacturing.

• Increased Airspace: Expanded airspace for drone operations, enabling greater flexibility.

• Special Emphasis on Drones for Hobbiests, clarity to promote that sector in the country.

The proposed Rs 3000 crore PLI scheme is a significant step towards realizing India’s vision of becoming a global drone hub. With industry expectations and growth projections aligned, this move is poised to establish the drone sector as a key contributor to India’s economic growth.

Union Minister of Heavy Industries Dr. Mahendra Nath Pandey said that the Ministry of Heavy Industries has launched a PLI scheme to encourage domestic manufacturing of automobile auto components and Advanced Automotive Technology (AAT) products with a budgetary support of Rs 25,938 crore. He further added that the nation is dependent on other countries for components like ‘sunroof’, automatic brakes, pollution warning system and tire pressure monitoring system, but the introduction of PLI scheme will give a big boost to the manufacturing of these components and will also generate 1.48 lakh jobs in the sector.