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NITI Aayog Urges States to Rethink EV Subsidies
India is trying to replace petrol and diesel vehicles with electric ones.
NITI Aayog said States should spend their EV subsidies where they can help the most.
It recommended starting with public buses and busy travel routes in selected cities.
States should also build charging stations that are spread out and dependable.
More than ₹1.27 lakh crore has already been committed to electric mobility.
However, electric vehicles are not being adopted equally across the country.
Delhi, Chandigarh and Maharashtra performed best on transport electrification.
NITI Aayog said States should now focus less on writing policies and more on putting them into practice.
NITI Aayog urged States to prioritize fully electrifying public-transport fleets and high-use corridors in selected cities.
The Centre and States have committed more than ₹1.27 lakh crore to electric mobility initiatives.
The commitment includes over ₹90,000 crore from the Centre and ₹37,613 crore under PM-eBus Sewa.
India’s median India Electric Mobility Index score rose to 40 from 36, but transport electrification remains uneven.
Delhi led the 2025 index with a score of 84, followed by Maharashtra at 78 and Karnataka at 73.
- Who
- NITI Aayog, led in this discussion by Member Rajiv Gauba, and India’s States and Union Territories.
- What
- NITI Aayog asked States to rethink EV subsidies and prioritize public-transport electrification, reliable charging infrastructure and research.
- Where
- India, with a focus on selected cities and high-use transport corridors.
- When
- The recommendation was made on Wednesday and published on September 16, 2026; the India Electric Mobility Index 2025 was also launched.
- Why
- To direct public spending toward greater electric-vehicle use and improve the uneven implementation of India’s EV transition.
Key facts
- Total committed funding
- More than ₹1.27 lakh crore from the Centre and States.
- Central commitments
- More than ₹90,000 crore for EV incentives, buses, charging, manufacturing and research.
- State and UT commitment
- ₹37,613 crore under PM-eBus Sewa for public-transport electrification.
- Median IEMI score
- 40, up from 36.
- Highest IEMI score
- 84, up from 77.
- EV penetration
- 8.25% in FY26, with more than 8.7 million EVs on the road.
- Index leader
- Delhi ranked first with a score of 84.
Quotes
Rajiv Gauba
NITI Aayog Member
“I urge States to prioritise electrifying public transport in select cities, ensure charging infrastructure is spatially well-distributed and reliable, and promote investments in research and innovation, “The transition to electric mobility is an economic, environmental, and strategic imperative for India’s journey towards Viksit Bharat@2047,” “The recent West Asia crisis could become a major inflection point for electric mobility, mirroring the 1970s oil crises that accelerated the global push 2”
thehindubusinessline.com
Sources
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