India launched a US$3.5 billion new energy vehicle incentive program

India will spend 257 billion rupees (about $3.
5 billion) to incentivize the auto industry to boost the production of clean cars, the government said on Wednesday, as part of the Paris climate agreement and is seeking to reduce greenhouse gas emissions
.

The need to reduce pollution has also driven the development of electric vehicles, a major city in the country of 1.
3 billion people with some of the dirtiest air
in the world.

India's cabinet said in a statement that the plan will enable India to "leapfrog to environmentally cleaner electric vehicles and hydrogen fuel cell vehicles
.
" It will herald a new era
of higher technology, more efficient and green car manufacturing.
”

The incentives will be offered to car and drone manufacturers
in India within five years.
To qualify for the program, new or existing manufacturers must invest at least $34 million
in India over five years, according to local media.

The government did not release further details about the plan on Wednesday, but said it was expected to generate about $5.
8 billion in new investment and create 750,000 jobs
.

It was previously reported that electric vehicle pioneer Tesla is looking to enter the Indian market
.

Automotive industry analyst Awanish Chandra told AFP the plan was a clear message from the government that it wanted to "incentivize green energy"
.

India is the world's third-largest carbon emitter and is expected to become the world's most populous country
by mid-century.
The country is on track to surpass the targets set out in the
2015 Paris climate agreement.

But driven by industry and transportation, carbon emissions are still expected to increase by 50%
by 2040.
According to the International Energy Agency, the number of trucks on India's roads is expected to increase by about 25 million by 2040
.