Union Minister of Road Transport and Highways Nitin Gadkari's assertion that the time has come to end subsidies for Electric Vehicle (EV) manufacturers deserves careful analysis.
While it is true that EV adoption is growing, abruptly ending subsidies could slow down this momentum. The subsidies have been crucial in making EVs more affordable, encouraging people to switch from fossil-fuel-powered vehicles to cleaner alternatives. Removing these incentives would likely lead to an increase in prices, which could deter potential buyers and slow the transition to electric mobility.
One major concern is that without subsidies, the cost of EVs may become unaffordable for a significant portion of the population. The higher prices would likely result in continued reliance on traditional vehicles, further delaying efforts to reduce carbon emissions and dependence on fossil fuels. This would be counterproductive to the government's broader environmental and economic goals. Before making such a significant decision, it is essential for the government to seek the opinions of all genuine stakeholders. This includes manufacturers, consumers, environmentalists, and industry experts.
Decisions of this magnitude should be made with careful consideration and input from those who will be most affected, not in an ‘autocratic' manner. The idea of policymaking in a democratic setup is rooted in consensus, ensuring that the interests of all parties are represented. It is also important to recognize that those in power may have their own interests, which could influence their decisions.
To avoid conflicts of interest, there must be transparency in the decision-making process, and a broad consensus should be reached. This ensures that the decision to end or continue subsidies is made with the public's best interest in mind, rather than serving narrow agendas. While the eventual phase-out of subsidies is inevitable as the EV market matures, it must be done strategically. A hasty withdrawal could hamper the country's progress toward a greener future. A well-considered phased approach that takes into account the views of all stakeholders is crucial for ensuring a smooth and sustainable transition to electric mobility.
All said and done, looking into the vast experience of the Union Minister one cannot rule out his opinion out rightly but implementing the same without taking into confidence all the stakeholders would also not be a good idea.
