Government's Daily Press Information Bureau Updates for June 3, 2025
India has announced a new scheme aimed at boosting the domestic production of electric vehicles (EVs) and positioning the country as a global hub for EV manufacturing. The scheme, named the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" (SPMEPCI), has been approved by the Government of India and is strategically crafted to attract investments from global EV manufacturers.
The scheme, which aligns with India's national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact, will mandate domestic value addition targets to support the 'Make in India' and 'Aatmanirbhar Bharat' initiatives.
To ensure the commitment of the applicants, a Bank Guarantee from a scheduled commercial bank in India equivalent to the total duty to be forgone, or Rs4,150 crore, whichever is higher, during the scheme period, will be required. This move is designed to position India as a significant player in the global EV market with a robust innovation and manufacturing ecosystem.
The scheme has a minimum investment threshold of ₹4,150 crore. Approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at a reduced customs duty of 15% for a period of 5 years from the Application Approval Date. However, the maximum number of e-4W allowed to be imported at the aforesaid reduced duty rate shall be capped at 8,000 nos. per year.
The Department of Revenue, Ministry of Finance, has also issued a notification for reduced import duties in line with the provisions of the Scheme. The window for receiving applications through the Notice Inviting Applications will be for a period of 120 days (or more), and a non-refundable application fee Rs. 5,00,000/- will be payable by the Applicant while filing the Application Form.
Boosting Space and Aviation Sectors
In addition to the EV manufacturing scheme, India's current policies and initiatives strongly focus on the convergence of space and aviation. These efforts collectively aim to position India as a significant player in the global aviation and space markets with a robust innovation and manufacturing ecosystem.
Key policies and initiatives include the Human Spaceflight and Space Station Development program, the expansion of India’s space economy via IN-SPACe and ISRO, Urban Air Mobility (UAM) and Drone Regulations, and the Modernization of Civil Aviation Fleet.
India is progressing toward its first independent human spaceflight mission scheduled for early 2027, involving crewed missions with astronauts trained rigorously. This program supports the development of critical technologies for safe human spaceflight and lays the foundation for the future Bharatiya Antariksh Station (India’s space station), which will enable advanced research in microgravity and space science.
The Indian National Space Promotion and Authorization Centre (IN-SPACe) was established to facilitate private sector involvement and international partnerships aiming to exponentially grow India’s space economy from 2% of the global share to $44 billion by 2033. The strategic plan covers upstream (launch services), midstream (satellite operations), and downstream (space-based applications) sectors.
India is actively developing frameworks to support UAM, including regulatory reforms such as the Drone Rules 2021, Production Linked Incentive (PLI) schemes, and the Digital Sky platform to enable drone operations. Collaborations with premier institutions like ISRO and DRDO help bridge research and commercial application.
Air India, under Tata Group ownership, is undergoing a major fleet renewal with an order of 570 new aircraft, including fuel-efficient, eco-friendly models like the Airbus A321neo, A350-1000, and Boeing 787-9 Dreamliner. These advances in fleet capability align with global trends towards sustainability and increased capacity, enhancing India’s competitiveness in global aviation markets.
Impact on the Global Aviation Market
The strategic focus on space-based technology and integration with aviation, including satellite navigation, remote sensing, and space exploration, enhances aerospace research and provides advanced infrastructure supporting aviation innovation.
The growth of UAM and drone ecosystems in India driven by regulatory and industrial support attracts global OEMs and investments, potentially positioning India as a manufacturing and R&D hub for next-generation aviation technologies.
The scale and sustainability of fleet modernization at Air India contribute to improved operational efficiency and green aviation practices, influencing global aviation markets through enhanced connectivity and competitive service offerings.
With ambitious goals for the space economy, India is expected to strengthen its role in global upstream and downstream space services, impacting satellite communications, navigation, and aerospace markets interconnected with aviation.
These convergent policies and initiatives create a synergistic ecosystem, making India an emerging leader in the integrated development of space and aviation technologies with increasing influence on the global aviation and aerospace sectors.
- The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), aiming to boost electric vehicle production, aligns with India's goal of fostering sustainable mobility and reducing environmental impact.
- The scheme also aims to drive economic growth by attracting investments from global EV manufacturers, and positions India as a global hub for EV manufacturing.
- Additionally, India's focus is on the convergence of space and aviation, with the intention of becoming a significant player in the global aviation and space markets.
- Key initiatives include the Human Spaceflight and Space Station Development program, the expansion of India’s space economy via IN-SPACe and ISRO, Urban Air Mobility (UAM) and Drone Regulations, and the Modernization of Civil Aviation Fleet.
- India is progressing toward its first independent human spaceflight mission scheduled for early 2027, which supports the development of critical technologies for safe human spaceflight.
- India’s space economy is expected to grow from 2% of the global share to $44 billion by 2033, given the establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe).
- Air India is undergoing a major fleet renewal with a focus on fuel-efficient, eco-friendly models, aligning with global trends towards sustainability and increasing India’s competitiveness in global aviation markets.
- India's strategic focus on space-based technology, integrated with aviation, enhances aerospace research and supports the growth of UAM and drone ecosystems, potentially positioning India as a manufacturing and R&D hub for next-generation aviation technologies.
