According to the survey, EVs hold enormous potential not only "because it is environment friendly but also because India can emerge as a hub of manufacturing" which will generate employment and growth opportunities.
"It may not be unrealistic to visualise one of the Indian cities emerging as the Detroit of EVs in the future," said the survey, tabled in the Parliament by Finance and Corporate Affairs Minister Nirmala Sitharaman on Thursday.
"Appropriate policy measures are needed to lower the overall lifetime ownership costs of EVs and make them an attractive alternative to conventional vehicles for all consumers."
Currently, the market share of electric cars in India is only 0.06 per cent whereas it is 2 per cent in China and 39 per cent in Norway.
Globally, the sales of electric cars have been rising at a fast pace from just over 2,000 units being sold in 2008 to over 10 lakh in 2017.
Besides, the survey highlighted that market share of EVs increases with higher availability of charging infrastructure.
"It, therefore, becomes important that adequate charging stations are made available throughout the road networks," the survey said.
"In India, the limited availability of charging infrastructure seems to be a major impediment to increased adoption of EVs," it said.
( With inputs from IANS )