Logistics and online retail within India continues to grow based on new innovations and better service. However this is having a secondary issue. More delivery vehicles on the roads only adds to traffics issues and India has to face this problem while balancing the continuing growth of the new industries.
At the same time, India has to cut down the use of fossil fuels in vehicles as per the Paris Agreement of 2015, which is signed by 195 countries. As part of its commitment to the agreement, India plans to reduce its carbon emissions per unit of GDP by 33-35%, and produce 40% of its installed electricity capacity by 2030 through non-fossil fuels.
For India to meet the terms of the agreement, it has to spend more towards adoption of carbon-neutral technologies such as electric vehicles and renewable energy by 2025.
Ahead of the Paris Agreement, the Indian government set up a National Electric Mobility Mission Plan (NEMMP) in 2013 to have at least 30% electric vehicles among all vehicles on the road by 2030. To fuel this change, the union government has announced Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme in 2015. It had proposed to invest INR 10K Cr towards electric vehicles (EV) adoption in the next three years.
Complementing the central government’s ambitious plans are the promising state government EV policies and dedicated departments. The government efforts are reflected in the boom of electric vehicle startups in India. From Mahindra and Ola’s EV-focused partnership to a slew of electric bike companies to startups coming to improve battery management and charging infrastructure. The electric vehicle sector has seen a lot of investment and startups, and things are slowly changing.
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