India Accelerates EV Adoption with FAME Scheme and PM E-DRIVE Push

Written by: Sachin GuptaUpdated on: 25 Mar 2026, 4:42 pm IST
Phase I of FAME scheme served as a pilot phase, aimed at evaluating technological feasibility and gauging market response
FAME scheme
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The Government of India has effectively implemented the Faster Adoption and Manufacturing of Electric Vehicles (FAME India) Scheme in two phases, Phase I (April 1, 2015, to March 31, 2019) and Phase II (April 1, 2019, to March 31, 2024). The initiative has played a significant role in accelerating electric vehicle (EV) adoption, expanding charging infrastructure, and encouraging domestic manufacturing.

Phase I Overview (2015–2019)

Phase I served as a pilot phase, aimed at evaluating technological feasibility and gauging market response. Key achievements include:

  • Around 2.8 lakh electric and hybrid vehicles were supported with incentives amounting to ₹359 crore.
  • A total of 425 electric and hybrid buses were sanctioned and deployed across multiple cities, with government support of approximately ₹280 crore.
  • 520 charging stations were approved with a total outlay of ₹43 crore.
  • Technology development projects worth about ₹158 crore were sanctioned, including the establishment of testing infrastructure and Centres of Excellence focused on advanced research in electrified transportation and battery engineering.

Phase II Overview (2019–2024)

FAME II was rolled out with a substantial budget of ₹11,500 crore to scale up adoption and infrastructure. Its key outcomes include:

  • Support for the sale of 16,71,606 electric vehicles during the scheme period.
  • Deployment of 5,195 electric buses under the scheme as of January 31, 2026.
  • Installation of 9,159 EV public charging stations (PCS) as of January 1, 2026.

PM E-DRIVE Scheme (from April 2024)

To further address technological challenges, strengthen R&D, and build a robust EV ecosystem, the government launched the PM E-DRIVE Scheme. Key measures under this initiative include:

  • Allocation of ₹780 crore for upgrading testing agencies and enhancing research and development capabilities.
  • Provision of ₹4,391 crore for deploying 14,028 electric buses across major cities.
  • Investment of ₹2,000 crore to expand nationwide EV public charging infrastructure.
  • Implementation of a Phased Manufacturing Programme to promote localisation of critical EV components and strengthen the domestic supply chain.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 25, 2026, 11:09 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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