Buyers of two-wheelers can avail a subsidy of Rs10,000 and e-rickshaws of Rs25,000 in first year under the PM E-DRIVE Scheme.
By making electric vehicles more affordable, the scheme not only aims to boost sales but also plays a crucial role in addressing environmental challenges.
India’s Heavy Industries Minister HD Kumaraswam said the forthcoming PM E-DRIVE Scheme will offer considerable subsidies to buyers, thereby encouraging the adoption of electric vehicles (EVs) and fostering a greener transportation ecosystem.
Under the PM E-DRIVE Scheme, buyers of electric two-wheelers will be entitled to a maximum subsidy of Rs10,000 in the first year of the scheme’s implementation. The subsidy structure is based on the power capacity of the vehicle’s battery, which is fixed at Rs5,000 per kilowatt hour.
However, it is important to note that the total subsidy for an individual buyer will not exceed the stipulated cap of Rs10,000 during the initial year.
The structured subsidy aims to make electric two-wheelers more financially accessible, thereby increasing their market penetration and promoting their usage as an environmentally friendly alternative to conventional internal combustion engine vehicles.
In the subsequent year, the scheme continues to support buyers, albeit at a reduced rate. The subsidy per kilowatt hour will be halved to Rs2,500, and the maximum benefit will also decrease to Rs5,000.
The tapering of financial incentives reflects a strategic approach aimed at building a sustainable market for electric two-wheelers, where consumers can eventually rely less on subsidies and more on the inherent advantages of EV ownership, such as lower operating costs and reduced maintenance requirements.
Affordable transportation
The initiative is not limited to electric two-wheelers; e-rickshaw buyers also stand to benefit significantly from the PM E-DRIVE Scheme. In the first year, e-rickshaw purchasers can avail themselves of a generous subsidy of Rs25,000, which is halved to Rs12,500 in the second year.
The dual focus on both two-wheelers and e-rickshaws underscores the government’s commitment to enhancing urban mobility solutions and providing affordable transportation alternatives within cities.
The introduction of the PM E-DRIVE Scheme is also a reflection of a broader understanding of the current challenges faced by consumers in adopting electric vehicles, such as upfront costs, charging infrastructure, and range anxiety.
By providing substantial financial incentives, the government is taking definitive steps to alleviate these concerns and encourage the shift towards electric mobility.
Transformation stems from APAC’s expanding technological capabilities coupled with robust digital infrastructure, factors that are fundamentally reshaping its AI ecosystem.
Region faces significant disparities in AI readiness among countries, inconsistencies in internet connectivity in many parts of the region, varying regulatory frameworks, and a lack of skilled talent.
The Asia-Pacific (APAC) region is at the precipice of a transformative era, asserting itself as a formidable player in the global landscape of artificial intelligence (AI).
What underpins this rapid ascent is not merely technological enthusiasm but strategic investments that signal a long-term commitment to leveraging AI and cloud solutions.
The influx of capital from major technology companies into the region reveals a landscape brimming with potential and opportunities. The transformation stems from APAC’s expanding technological capabilities coupled with robust digital infrastructure, factors that are fundamentally reshaping its AI ecosystem.
Tejal Hartalkar, the Senior Disruptive Tech Analyst at GlobalData, aptly notes that the wave of investments earmarked for AI and cloud initiatives in APAC reflects a significant paradigm shift rather than a transient phenomenon.
“The substantial financial backing is not only a testament to the region’s capacity to attract large-scale technology projects but is also indicative of the strategic alignment of several nations, including Singapore, Malaysia, Indonesia, and Thailand, as they endeavour to cultivate AI-driven economies.” The strategic investments being funneled into these countries are reshaping their economic landscapes, positioning them as leaders in AI innovation.
Among the key players fueling this momentum are some of the world’s largest tech companies—Microsoft, Amazon, Google, and NVIDIA—each contributing substantial investments aimed at bolstering AI infrastructure and skill development within the region.
The commitments highlight the intense competition among tech giants to harness the emerging opportunities in APAC, which is fast becoming recognised as a hub for AI research, development, and application.
Microsoft
Microsoft has emerged as a formidable force in the APAC landscape, announcing ambitious investment plans across Southeast Asia and Japan. So far in 2024, the company has pledged $2.2 in Malaysia to establish a national AI Centre of Excellence and enhance cybersecurity; $1.7 billion in Indonesia for data centres and AI skilling for 840,000 individuals; and $2.9 billion in Japan for expanding hyperscale computing and AI training for over three million people.
Additionally, initiatives in Thailand will see the company develop new AI infrastructure, emphasizing its goal of equipping 2.5 million individuals with AI skills in Southeast Asia by 2025. Such extensive investments underscore Microsoft’s recognition of the APAC region as a critical battleground in the global AI landscape.
Amazon
Amazon also plays a pivotal role in the APAC AI revolution. The company unveiled its grand plans for cloud infrastructure investments in the region, announcing a staggering $12.7 billion commitment to India by 2030.
The investment is accompanied by the establishment of a new infrastructure region in Taiwan slated for launch by early 2025, driven by the burgeoning demand for cloud services.
Moreover, Amazon Web Services (AWS) plans to $8.88 billion in Singapore’s cloud infrastructure over the next four years and over $5 billion in Thailand by 2037, with plans to launch the AWS Asia Pacific (Bangkok) Region by early 2025. These expansions aim to support advanced technologies like generative AI and machine learning (ML).
The strategic focus on cloud infrastructure is a vital component in making AI solutions accessible and scalable for various enterprises across APAC.
Google
Likewise, Google has heightened its investment footprint in Southeast Asia, recently augmenting its total investment in Singapore to $6.7 billion, following the completion of its fourth data centre in the region.
Additionally, in May, Google pledged $2 billion for a hyperscale data center and a new Google Cloud region in Malaysia to enhance its AI service delivery to enterprises.
The initiatives are specifically designed to enhance AI service delivery to enterprises, allowing local businesses to thrive in an increasingly digital and data-driven marketplace.
NVIDIA
NVIDIA’s strategic initiatives further underline the momentum building within the APAC region. The company’s recent collaborations, particularly with Japan’s digital infrastructure providers, have been bolstered by a notable $740 million investment from Japan’s Ministry of Economy, Trade and Industry.
The partnership aims to foster generative AI capabilities, promote AI adoption, enhance workforce skills, and support local startups.
Furthermore, NVIDIA’s commitment to create a $200 million AI Centre in Indonesia reflects a proactive approach to developing the local AI ecosystem.
By investing in both infrastructure and talent development, NVIDIA is positioning itself as a critical enabler of AI advancements in the region, ensuring that countries within APAC can harness the full potential of AI technologies.
Hartalkar said the rapid advancements in AI across the APAC region are not only addressing immediate technological needs but also laying the groundwork for a data-driven, innovative, and sustainable future.
However, he said the region faces several challenges in cloud and AI growth, including significant disparities in AI readiness among countries, inconsistencies in internet connectivity in many parts of the region, varying regulatory frameworks, and a lack of skilled talent.
“Despite these hurdles, there is a strong commitment across the region to harness cloud and AI for inclusive growth and sustainable development, offering incredible opportunities for investors and indicating a promising path forward.”
Industry to create a collaborative group aimed at developing safe super intelligence with a diverse cadre of professionals, including academicians, developers, startups, enterprises, and venture capitalists.
Key stakeholders in the tech community emphasise that the successful adoption of artificial general intelligence (AGI) hinges on its acceptance as explainable, stable, and reliable.
The sentiment was echoed during a recent conference where industry leaders discussed the profound implications of AI for economic prosperity.
India, showcasing its commitment to responsible AI development, became a founding member of the Global Partnership on Artificial Intelligence (GPAI) in June 2020.
The multi-stakeholder initiative underscores the global recognition of AI as a strategic differentiator among nations.
Cultivating collaboration
Building on this momentum, a groundbreaking initiative is set to reshape the AGI landscape: the introduction of a collaborative group aimed at developing safe super intelligence (SSI).
The SSI group represents a diverse cadre of professionals, including academicians, developers, startups, enterprises, and venture capitalists (VCs), all united in a shared goal.
The initiative fosters a vibrant environment for ideation, exploration, and problem-solving, creating a fertile ground for innovative approaches to safe AGI.
Vinay Kumar Sankarapu, CEO and Founder of Arya.ai, delineated the group’s vision of establishing a robust open-source research community, dedicated to addressing critical challenges in AGI and laying the groundwork for achieving SSI.
Structured to allocate two-thirds of its resources to research and one-third to applied machine learning, the SSI group will have a global presence in the United States, India, Singapore, and the United Kingdom.
Its mission extends beyond mere technological advancement; it seeks to cultivate collaboration among enterprises, academic institutions, VCs, and the developer community, thereby establishing a sustainable SSI ecosystem.
The initiative is spearheaded by Sankarapu, whose extensive background in AI innovation has positioned him as a leader in the field.
His recognition as a key figure in the ‘Task Force on Artificial Intelligence for Economic Transformation’ established by India’s then Commerce and Industry Minister, Nirmala Sitharaman, further attests to his expertise and commitment to advancing AI responsibly.
In collaboration with Nayyan Mujadiya and Nikhil Agarwal, both influential figures in the AI sector, the SSI initiative aspires to foster an environment conducive to innovation and stability.
Losses of Ather Energy, a Bengaluru-based electric vehicle company, have widened by 22 per cent, amounting to Rs1,060 crore, while its operating revenue experienced a marginal decline of 1.5 per cent, totaling Rs1,753.8 crore compared to the previous fiscal year.
The dip can be largely attributed to a reduction in government subsidies, which has significantly affected consumer pricing and, subsequently, revenue generation.
The reduction in subsidies led to an increase in retail prices for Ather’s electric two-wheelers (E2Ws), ranging from Rs20,434 to Rs30,285.
As noted by the company, “This contributed to a slight decrease in our revenue from operations.” Such market responses highlight the delicate balance that electric vehicle manufacturers must maintain between production costs, pricing strategies, and external economic factors.
In FY24, Ather Energy’s expenses reached a staggering Rs2,674.2 crore, with a significant portion allocated to the cost of materials consumed, which saw an increase of 2.7 per cent year-on-year to Rs1,579.2 crore.
Competitive market
Furthermore, the company’s employee benefit expenses rose by 10.3 per cent to Rs369.2 crore, reflecting its commitment to scaling operations in a competitive market.
Despite these challenges, Ather Energy recorded a remarkable growth of 335 per cent in operating revenue in FY23, reaching Rs 1,780.9 crore.
The past success underscores the firm’s potential for future growth and resilience in the fast-evolving electric vehicle sector. Notably, in recent developments, Ather secured secured $71 million led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to $1.3 billion and making it a new unicorn.
The funding, along with its IPO plans, aims to bolster research and development and establish a new manufacturing facility, positioning the company for sustained growth and innovation.
Aims to enhance the accessibility and efficiency of wealth management services through technology and a user-centric approach.
Centricity, a burgeoning digital wealth management platform in India, has successfully raised $20 million in a seed funding round, thereby achieving a valuation of $125 million.
The funding round, spearheaded by Lightspeed, attracted notable participants including Korean venture capital fund Paramark VC, Ritesh Agarwal, founder of OYO, NVIDIA’s Managing Director Vishal Dhupar, and various family offices, including those associated with cricket icon MS Dhoni.
The diverse investor base underscores the growing recognition of Centricity as a significant player in the financial technology landscape.
Founded in January 2022 and operating from Gurugram, Centricity has shown remarkable growth, previously securing $4 million at a valuation of $20 million just a year ago.
The company’s rapid ascent reflects its commitment to addressing the evolving needs of wealth management.
According to the company’s statement, the newly acquired capital will be allocated towards scaling its operations significantly, with a focus on doubling its technical development team from 75 to over 150 specialists.
The expansion aims to foster innovation in areas such as generative artificial intelligence, insure-tech, and broking-tech platforms.
Manu Awasthy, the founder and CEO of Centricity, articulated the underlying market motivation for the platform. He noted that “end investors in wealth management are tech-starved and crave for simple, sincere solutions.”
Centricity’s approach, characterised by a tech-first mindset, seeks to fill this gap by offering practical technological applications that are responsive to investor demands. Within a mere 15 months of its inception, Centricity has already established itself as an agile and responsive player, outpacing traditional wealth management companies in India.
Government continues to evaluate numerous proposals for semiconductor units across various states, including Uttar Pradesh.
Ashwini Vaishnaw, India’s Minister for Electronics and Information Technology, said on the sidelines of Semicon India 2024 that the soon to be launched Semicon 2.0 programme would expand upon the framework established by its predecessor, Semicon 1.0.
Notably, the first phase of the Semicon 1.0 programme, initiated on December 21, 2021, with a budget allocation of Rs76,000 crore, is nearing completion.
The foundational work has laid the groundwork for a more comprehensive approach to semiconductor development across the country.
Semicon 2.0 is poised to encompass the entire semiconductor value chain, a strategic move that underscores the government’s commitment to fostering an integrated ecosystem that attracts global industry leaders.
As Vaishnaw highlighted, the enthusiastic reception of India’s semiconductor initiatives by international stakeholders signifies the nation’s burgeoning prominence in this critical sector.
Addressing the needs
The government’s proactive measures have already resulted in the approval and ongoing construction of five semiconductor units, emphasising a robust momentum that is crucial for establishing India as a global semiconductor hub.
A salient feature of the government’s strategy is the upgrade plan for the semiconductor lab in Mohali, which is expected to advance significantly once submitted to the Cabinet.
Additionally, the rapid development of Micron’s high-end semiconductor fabrication plant in Sanand, Gujarat—the first of its kind in India—illustrates the potential for transformative growth in this sector. With operations anticipated to commence in late 2024, this facility will serve as a cornerstone in the nation’s semiconductor production capabilities.
As the government continues to evaluate numerous proposals for semiconductor units across various states, including Uttar Pradesh, the importance of a diversified and resilient semiconductor supply chain becomes increasingly evident.
The cumulative investments exceeding Rs1.5 trillion reflect not only market confidence but also the strategic foresight of the Indian government in addressing global semiconductor demands.
