Abstract

India, like many countries, is transitioning towards electric vehicles to reduce carbon emissions and mitigate climate change. However, the high upfront cost of EVs remains a significant barrier for many consumers. Tax deductions and subsidies can play a crucial role in making EVs more affordable and encouraging their adoption. This research paper analyzes the need for tax deductions and subsidies for electric vehicles (EVs) in India. The study examines the impact of these incentives on EV adoption, government revenue, and environmental benefits. The paper also investigates the effectiveness of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in India, which provides subsidies for EV purchases. It also compares the tax incentives offered in India with those in other countries, such as China. Data analysis which are done by collecting samples from 60 individuals reveals that tax deductions and subsidies are indeed a significant factor in influencing EV purchases.Consumers are more likely to consider EVs when they can benefit from tax breaks. However, the paper also highlights the need for further government support, including improvements in charging infrastructure and research and development in EV technology. In conclusion, the study emphasizes the importance of tax deductions and subsidies in promoting the transition to electric vehicles in India. It recommends that the government continue to provide incentives and invest in supporting infrastructure to accelerate EV adoption and achieve its climate goals.

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