New Delhi. The government is emphasizing on promoting environmentally friendly and sustainable transportation. The clean mobility ecosystem in the country will be worth $250 billion by FY 2030, growing at a compound annual rate (CAGR) of 38 percent.
According to a Praxis Global Alliance report, the total transportation market in India is expected to reach $1.2 trillion by FY 2030, with clean and electric mobility accounting for nearly 20 per cent of the total transportation market.
“India’s journey towards electrifying its transportation sector is not only a leap towards a sustainable future, but also a significant economic opportunity,” said Aryaman Tandon, Managing Partner, Mobility, Energy and Transportation, Praxis Global Alliance.
The EVtocharging station ratio in India is 9:1. To reach the globally accepted standard ratio of 4:1, the government has taken several initiatives, including significant allocations in FAME 2 (over $120 million) and reduction in GST rates on EV chargers.
According to the report, “Despite the challenges faced by the global EV market due to geopolitical changes and fluctuations in manufacturing costs, India stands strong despite these difficulties.”
The country's strategic location, along with favourable domestic conditions and strong policy framework, creates a favourable environment for the adoption of clean mobility.
According to the study findings, India's emphasis on developing an integrated clean mobility ecosystem not only drives the adoption of electric vehicles but also spurs innovation in supporting industries such as charging infrastructure, battery technology and sustainable supply chains. The sector has significant foreign direct investment (FDI) and private equity investment, which is a key driver of growth.
The clean mobility product opportunity is estimated to reach $94 billion by FY 2030. This means that the number of people using clean modes of transport will increase significantly and reach 23 percent.
The mobility services opportunity in India is estimated to be $450 billion in FY24, with over 80 per cent of the opportunity being in transportation and logistics services.
According to the report, the size of the software solutions opportunity is estimated at $0.37 billion in FY 2024, which is expected to grow at a CAGR of 27 per cent to reach $1.58 billion by FY 2030.
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– / Written By Top News Bulletin
Image Credit: KhasKhabar.