As India accelerates its transition to electric mobility, the policy narrative has largely focused on the vehicles themselves—sales figures, manufacturing incentives, and consumer subsidies. However, as the Union Budget 2026 approaches, industry veterans are urging the government to shift its gaze from the dashboard to the plug. The success of India’s EV revolution is no longer just about how many cars roll off the assembly line; it is about keeping them moving. This requires a robust, ubiquitous charging network that is as accessible and affordable as traditional fuel stations.
Currently, a glaring policy disconnect threatens to stall this momentum. While the purchase of an Electric Vehicle (EV) enjoys a concessional Goods and Services Tax (GST) rate of 5%, the service of charging that very vehicle is taxed at a steep 18%. This inverted duty structure creates an unnecessary cost burden for the end consumer and disincentivizes the use of public charging infrastructure. Furthermore, for Charge Point Operators (CPOs) tasked with building this national grid, access to affordable capital remains a significant hurdle. Without structural financial support, scaling from thousands of chargers to the millions required for mass adoption remains a daunting challenge.
S. Raghav Bharadwaj, CEO & Founder at Bolt.Earth, identifies these two specific policy levers—tax rationalization and capital access—as the critical signals the industry needs from the Finance Minister to truly democratize electric mobility.
“As we look towards the Union Budget 2026, India is presented with 2 critical opportunities to signal that the government views charging an EV as essential as buying one – First, the inverted Duty structure on EV charging, Currently, EVs are taxed at 5% GST, while charging services attract 18%. Reducing the inverted duty structure on charging services to 5% would lower costs for the end consumer, spurring growth.
Second, inclusion of EV charging infrastructure under Priority Sector Lending (PSL). This would unlock affordable capital for CPOs, businesses and startups, allowing us to move from installing thousands of chargers to millions.”
