India, April 25 -- The Centre is reportedly open to modifying its Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) based on the outcomes of the Bilateral Trade Agreement (BTA) with the US and other free trade agreements.

SMEC, announced in March 2024 is yet to take effect. As per the scheme, approved EV manufacturers can set up manufacturing facilities in India with a minimum investment of $500 Mn to make EV four-wheelers. Additionally, the scheme puts a duty rate of 15% on imported EVs.

If the BTA discussions lead to setting tariffs on imported cars to 15% along with specified investment numbers, the government may revise the policy to attract global manufacturing players, Business Standard reported, citing an...