Traffic jam due to rain at expressway road on July 5, 2019 in Noida, India.
Sunil Ghosh | Hindustan Times | Getty Images
India is pushing to become a global manufacturing hub for electric vehicles after the government offered financial incentives to spur demand and eased several regulatory restrictions.
Finance Minister Nirmala Sitharaman last Friday presented the country’s new budget where she said her government will provide additional income tax deduction of 150,000 rupees (about $2,185) on the interest paid on loans to purchase electric vehicles. Electric vehicle buyers can accrue around 250,000 rupees in total benefits over their entire loan period, she said.
“The government is trying to create demand, to spur demand, and thus help (original equipment manufacturers),” Puneet Gupta, associate director of automotive forecasting at IHS Markit, told CNBC. Gupta explained that car manufacturers in India have said that the lack of demand deters them from producing higher quantities of…