Indian government’s new $500 million Electric Vehicle (EV) Policy aims to attract global investments and position India as a premier EV manufacturing hub. However, clarifications issued to Vietnam’s VinFast highlight potential misunderstandings. The policy mandates a $500 million investment within three years, with investments counting 240 days after plant construction begins. Failure to comply results in loss of benefits. Industry concerns include fairness, with existing players fearing disadvantage against new entrants. Chinese firms’ potential influx sparks import quotas tied to local investments. Various government schemes, including FAME India and PLI, aim to boost EV adoption and manufacturing.
