According to NITI Aayog CEO Parameswaran Iyer, green mobility will play a significant role in India’s decarbonisation process.
Iyer made the remarks at an event organized by the “Shoonya forum” and said that financing is crucial for the scaling up of electric mobility in India.
The CEO of NITI Aayog pointed out that rural India is rapidly urbanizing. He said that electric vehicles are needed in smaller cities as well.
According to a report by NITI Aayog and Rocky Mountain Institute, India, banks and non-banking financial institutions (NBFCs), there is potential for electric vehicle financing markets to reach Rs 40,000 crore in 2025 and Rs 3.7 lakh crore by 2030.
It was also stated that banks and NBFCs should lend to EV buyers in accordance with the Reserve Bank of India’s priority sector lending guidelines.
Priority sector lending is intended to increase financial access and support employment opportunities.
The report suggested that the RBI could consider EV segments and use cases based on five parameters: socio-economic potential, scalability, techno-economic viability, livelihood generation potential, and stakeholder acceptance.