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Informist, Thursday, Jul. 2, 2026

 

NEW DELHI – The government should bring out a roadmap over 10-15 years to increase the adoption of electric vehicles and reduce India's import bill, State Bank of India's Research team said in a report Thursday. A rise in the share of electric vehicles to 20% by 2030 from the current 8% could bring down the import bill by INR 1 trillion, Group Chief Economic Advisor Soumya Kanti Ghosh said in the report.

 

The government should set clear targets for vehicle segments and charging infrastructure in order to improve adoption, with a need to increase the share of fast chargers from the current 30%, the report said. The government should also expand regulation and battery manufacturing, provide concessional land access for public charging stations, and introduce a dedicated green mobility category. More directly, the government can procure electric vehicles for this use and the Centre could also create a credit guarantee fund to strengthen the electric vehicle ecosystem, SBI Research said. 

 

Electric vehicles have been at the forefront of discussions in recent months as crude oil supplies from March to June tightened due to the effective closure of the vital Strait of Hormuz. Earlier this week, the Delhi government introduced a new policy to encourage electric vehicle use. The Centre already has a scheme to subsidise the cost of purchasing electric trucks. Tata Motors Passenger Vehicles Ltd. has laid out a plan to increase electric vehicle production, while TVS Motor Co. Ltd.'s total electric vehicle sales in June tripled on year.

 

The oil intensity of an economy measures its consumption to its GDP. India's oil intensity halved to 0.7% of GDP in financial year 2025-26 (Apr-Mar) from 1.4% in FY14, the report said. Reserve Bank of India Deputy Governor Poonam Gupta, who is a part of the Monetary Policy Committee, had noted in February that the oil intensity of India's economy is likely to continue to fall. According to SBI, this has led to a resilience in the Indian economy in April and May despite a fall in crude oil consumption due to lower supplies and higher prices.  

 

"Oil consumption has declined in April and May 2026 (-3.8% yoy and -6.5% yoy, respectively)," the research report said. "However, when we see leading indicators as passenger vehicle, 2Ws (two wheelers), tractor sales, exports, cargo traffic, GST e-way bills, credit all are holding up."  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Aaryan Khanna

Edited by Deepshikha Bhardwaj

 

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