Analysis reveals mixed effects of EV policies on manufacturing investment and supply chain development in India, suggesting a need for supportive market factors.
This study examines how state-level electric vehicle (EV) policies influence India’s EV ecosystem, focusing on manufacturing investment and supply chain development. Using data from 30 states and Union Territories, with proxies for production activity and innovation linkages, the analysis finds mixed results: weak policies deter manufacturing investment, but strong policies do not always lead to higher investment. While robust policy environments can attract production activity, supply chain development is more sensitive to broader economic conditions. The findings suggest that EV policy design must be complemented by supportive investment and market factors to foster balanced sector growth, as uneven industrial development risks reinforcing regional disparities and limiting access to sustainable technologies.
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Anshu Gambhir (2025) studied this question.
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