TMS Ep558: EV subsidies, rural sales in Diwali, markets, AQI

India’s heavy industries ministry wants to extend subsidies for electric vehicles under the FAME III scheme for five years. It also wants a higher allocation to support the growth of electric and alternate fuel vehicles. But the finance ministry is against it. It has reportedly questioned the rationale behind the proposal, saying major electric two-wheeler makers have benefitted the most from FAME I and II schemes and they don’t need further support from the government. So should the EV subsidies continue? 

According to Mckinsey, electric two-wheelers are expected to account for 60 to 70% of new sales in India by 2030. But rural demand is not growing at a fast clip as expected. While sales of two-wheelers have picked up, signs of distress are still visible in the rural belt. So will the upcoming Diwali lift the spirits of people in villages? 

After Diwali, let us now turn our focus to another festival. The elections -- also known as festival of democracy -- begin today with voting in Chhattisgarh and Mizoram. Usually, state elections are a non-event for the markets. But, are the markets viewing the current elections the same way? In our next report, Puneet Wadhwa speaks to market experts on what Dalal Street is pricing in? And what should be your investment strategy ahead of the polls?

While soaring benchmark indices may lift your spirit ahead of festivals, a look outside the window may dampen it if you are in north India. Financial capital’s Mumbai’s AQI too entered the red zone on Monday. But what is AQI? We explain it for you in this episode of the podcast.