Niti Aayog recommends priority sector lending status to EV retail financing

News: In a recent Niti Aayog report, it has recommended RBI to Include electric vehicles in the Reserve Bank of India’s priority sector lending (PSL) guidelines.  It projects market size pertaining to retail lending to EV space at ~₹ 40,000 crore by 2025 and ~₹ 3.7 lakh crore by 2030.

Views: This recommendation is largely aimed at providing attractive retail financing options at competitive rates to the EV buyer with retail financing for EV’s yet to pick up pace domestically. Inclusion of EV’s to PSL will help further push electrification in India and will be positive for the entire ecosystem. It will expand industries and allied activities in this domain and help in healthy EV infrastructure development.

Impact: Positive