Page 67 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Green Mobility
Modernizing India’s Fleet The reduction of GST from 28% to 18% for buses and commercial goods
vehicles aims to clean the air in Indian cities.

? Phasing Out Pollutants: Lower upfront costs encourage operators to replace older, polluting
vehicles with new BS-VI compliant models, which are up to 10 times cleaner than BS-IV
standards.

? Public Transport Boost: Reduced costs allow the government and private operators to deploy
more buses, enhancing last-mile and intercity connectivity.

? Logistics Efficiency: Lower tax on goods vehicles reduces transportation costs, helping expand
market access while lowering the carbon footprint of the logistics sector.

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Research, analysis & compilation by:
Economic Policy & Planning Team - FIPI
Email: pankhuri@fipi.org.in

Note: The information contained herein is compiled from various sources considered reliable, but its
accuracy and completeness are not warranted, nor are the opinions and analyses that are based on it.
FIPI is not responsible for any errors or omissions, nor shall it be liable for any loss or damage incurred
by reliance on information or any statement contained herein. While reasonable care has been
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regard, we may please be informed immediately.

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