The transition to a lower carbon energy system continues to be a priority across the globe, and the next decade is bound to witness a renewed energy landscape. Globally, nations are strategizing on fast tracking carbon neutrality agenda and having energy security.
There is clear consensus on two things, the first is that we need to leapfrog adoption of renewable energy and secondly, we need to have shock resilient supply chains across the world. Future growth in energy investments shall be driven by renewables and decarbonization technologies.
The Hon’ble Prime Minister launched the Aatmanirbhar Bharat initiative, with clear objectives of making the country self-reliant and making India a global manufacturing hub. India today, is the third largest renewable energy producer in the world, and we have successfully attracted an investment of over USD 75 billion in renewable energy sector.
Manufacturing in Renewable Energy (RE) sector has received renewed focus in India. Many incentives, both for domestic sales as well as exports and innovative schemes like Production Linked Incentive have been announced over the last two years to promote manufacturing.
There is clear realization that it’s time to unleash manufacturing potential in India in the RE sector. With all the impetus and ongoing initiatives, one can be confident that India would be second to none, and we are well poised to become a sought after global manufacturing hub. The fact that India has enough mettle to fulfill this collective vision is established in the bid to enhance greater competitiveness, as done in the past in many important sectors.
India has the advantage of stable geo-political environment and thriving manufacturing ecosystem across vital sectors. India houses the potential of one of the best skilled talent, R&D expertise, and world class engineering solutions. India is well poised to become a global manufacturing hub.
Significant investments in manufacturing have been announced in last couple of years, in manufacture of solar modules, solar cells, polysilicon, electrolyzers, fuel cells, batteries, glass, and other related components. There is clear intent of Indian manufacturing sector to play a dominant role in global supply chain.
With adoption of hydrogen and ammonia as fuel, over long term, India aims to be net exporter of energy. India’s low-cost manufacturing base yields the capability to seamlessly reorient the global supply chains. The stage is set to do it even better with a firm hold on sustainability. Recycling and adopting the circular economy mindset; skilling of the youth of the country and supporting domestic R&D are going to be a key determinant, in the new world order.
This is an era of global partnerships and collaboratively working amongst organizations across the world shall reap long-term benefits. Strong partnerships between Government institutions and businesses across the world will play a key role in making the carbon neutrality dream come true in a holistic and sustainable manner.
This article was contributed by Mr Sameer Gupta, Chairman, CII National Committee on Aatmanirbhar Bharat in RE Manufacturing and Chairman & Managing Director, Jakson Group and was first published in CII CommuniqueNovember 2022 edition.
