India’s demand for green energy is expected to grow by seven times in 2035, according to the latest BP Energy Outlook released on Wednesday
Accordingly, the share of renewable energy in the country’s fuel mix will increase from the present level of 2% to 8% in 2035
However, the green surge will be inadequate to meet India’s growing need for energy with the country’s demand growth expected to be more than double the non-OECD countries’ average of 52%
OECD countries refer to the 35 nations that are signatories to the Convention on the Organisation for Economic Cooperation and Development, or OECD, and mostly comprise mature economies
This comes in the backdrop of investors seeing enormous opportunity in India’s emerging green economy
India, the world’s third largest energy consuming economy after the US and China, plans to achieve 175 GW of renewable energy capacity by 2022 as part of its commitments to the United Nations Framework Convention on Climate Change adopted by 195 countries in Paris in December 2015
“The global energy landscape is changing. Traditional centers of demand are being overtaken by fast-growing emerging markets. The energy mix is shifting, driven by technological improvements and environmental concerns. More than ever, our industry needs to adapt to meet those changing energy needs,” said Bob Dudley, BP group chief executive in a statement
According to the report, an annual feature published by British energy firm BP Plc, the growth in India’s energy demand is expected to outpace the other so-called BRIC (Brazil, Russia, China, India) countries
India’s energy demand is expected to grow by 129%, while China and Brazil’s energy demand will grow by 47% and 41%, respectively. Russia’s energy demand is expected to grow by 2%
India’s energy consumption is expected to grow by 4.2% annually, faster than all major economies in the world. As a result, India’s share of global energy demand will increase to 9% by 2035, accounting for the second largest share among the BRIC countries with China at 26%, Russia at 4%, and Brazil at 2%
“Coal remains the dominant fuel produced in India with a 65% share of total production in 2035. Renewables overtakes oil as the second largest, increasing from 4% to 14% in 2035 as oil drops from 10% today to 3% by 2035,” the report said
In India, which is the biggest greenhouse gas emitter after the US and China, renewable energy currently accounts for 15%, or 45,917 MW, of the total installed capacity of 3,10,005 MW. According to the government, India has a renewable energy potential of around 900 GW from sources such as wind, solar, small hydro and bio energy
The National Democratic Alliance government’s focus on renewable energy stems from India’s energy import bill of around $150 billion, expected to reach $300 billion by 2030. India imports around 80% of its crude oil and 18% of its natural gas requirements. The government aims to effect a 10% cut in energy imports by 2022 and a 50% cut by 2030. India imported 202 million tonnes of oil in 2015-16
According to BP Energy Outlook’s prediction, India’s oil imports are expected to rise by 165%, followed by a 173% and 105% increase in gas and coal imports respectively. “Energy in transport grows by 5.8% per year and oil remains the dominant fuel source with a 93% market share in 2035,”
Prime Minister Narendra Modi is helping to open up India’s economy and reduce bureaucratic delays, DP World chairman Sultan Ahmed Bin Sulayem told ET’s Mohit Bhalla in an interview
The port operator runs 70 terminals in 31countries and has invested more than $1.2 billion in India
Sulayem was in India as part of a large business delegation accompanying Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, who was chief guest at India’s Republic Day celebrations
Edited excerpts: What role do you see DP world playing in India
First of all, official visits are very important for us as investors in India. We have been here in the port business for a few years now and operate six terminals and have a 30% market share. But the agreement reached between the two heads of state really puts a plan into action for India and UAE to cooperate further
Do you foresee that regulations will become more investor-friendly in the port sector? Do you have any specific expectations
I think so far the government has removed many of the obstacles. I think we are very pleased. Prime Minister Narendra Modi is opening up India and removing bureaucratic intervention and delays
How much capital have you committed in India so far
We have invested about $1.2 billion. At the last investor meet we have committed further $1billion investment in India
What is the potential you believe for freight volumes to increase in India and for your business to grow as a whole
India and China have similar populations but India’s trade generates about 10 million containers a year whereas China generates 100 million containers. The potential here is huge and India has more entrepreneurs than China. There are almost 2.5 million non-resident Indians (NRIs) in the UAE, so potential between UAE and India to trade is also vast and I believe this government will be able to unlock it
Are you exploring any strategic alliances in India
We are looking and when we find a partner and are able to reach an agreement which works for both parties we will go ahead
How do you think foreign investors perceive India’s potential
The fact that the government is looking at Make in India and facilitating foreign investors, I think it will make it very attractive. Everybody is aware of India’s potential but people fear bureaucracy and delays which is now actually not the case, we can feel it.
Prime Minister Narendra Modi on Wednesday thanked Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan for his country’s continued support to India, saying the two leaders have agreed to sustain the momentum of its relations in key areas, including energy and investments. The two nations inked 13 pacts including one on strategic cooperation
MoUs in the fields of defence, maritime co-operation, shipping, cyber space, commerce and nine others were signed between India and UAE. The Crown Prince is in India on the invitation of Prime Minister Narendra Modi. He will be the chief guest at the Republic Day celebrations to be held on January 26
Speaking at a joint press conference, Prime Minister Narendra Modi said he discussed trade, terrorism, Islamic radicalisation as well as threats in the region. “UAE is one of our most valued partners and a close friend in an important region of the world… We are working to connect the institutional investors in UAE with our National Investment and Infrastructure Fund,” Modi said, expressing gratitude to the UAE Crown Prince for taking care of Indian nationals living in the UAE as well as for granting land to build a temple in that country. “We also feel that our growing engagement in countering violence and extremism is necessary for securing our societies,”
Source:The Indian Express
The Indian manufacturing sector has the potential to elevate much of the Indian population above poverty by shifting the majority of the workforce out of low-wage agriculture. Manufacturing sector is the backbone of any economy. It fuels growth, productivity, employment, and strengthens agriculture and service sectors. Astronomical growth in worldwide distribution systems and IT, coupled with opening of trade barriers, has led to stupendous growth of global manufacturing networks, designed to take advantage of low-waged yet efficient work force of India.
Though the small and medium enterprises (SMEs) are the backbone of Indian economy, most of the SME owners face a lot of problem due to the non-availability of timely and adequate credit at the reasonable rate of interest. In addition, arranging collateral security or third party guarantee is the tough proposition for them. The financing constraints are due to a number of reasons, including stringent policies, legal/regulatory framework, institutional weaknesses, and lack of reliable credit information.
In the upcoming budget, there is an urgent need to raise the global competitiveness of the Indian manufacturing sector and it is imperative for the country’s long term-growth. The National Manufacturing Policy is by far the most comprehensive and significant policy initiative taken by the government. The policy is the first of its kind for the manufacturing sector as it addresses areas of regulation, infrastructure, skill development, technology, availability of finance, exit mechanism and other pertinent factors related to the growth of the sector.
To give a boost to the small entrepreneurs and job creation, the government has doubled the credit guarantee limit for small and medium businesses to Rs 2 crore to help them tide over the liquidity problems. The scheme used to cover only bank loans, but now it will cover loans given by NBFCs (non-banking financial companies) as well.
Governments in other great economies of the world such as USA, UK and China have set up a lot of technology parks for businesses to manufacture their own products & avoid any compromises on the technology front, thus contributing to the economy of these nations. India being a great platform for innovation and technology should take initiative in such activities to set up technology parks which not only provide great opportunities for business but also appreciates the value of innovation and technology.
Some of the prestigious institutes in India such as IIMs and IITs have taken initiative to help build these technology parks and the government should provide them support in terms of funds and recognition so that the abundant potential prevailing in small and medium enterprises of India gets ample opportunities to enhance and grow
Many small and medium scale enterprises prevailing in India have to depend on other manufacturing units which often results in the compromise of quality and unsatisfactory results. If the government were to provide them a location to set up their own manufacturing plants, quality of the products would enhance at a much greater scale and may also prove to be a vital platform for innovation and development of new products. Location to set up a plant is a pre-requisite for a lot of these small scale enterprises that are having permissions and IPRs from the government to manufacture in India but are deprived of land to set up their plant.
While the government appreciated the efforts and potential of these enterprises, by increasing the credit guarantee limit to Rs 2 crore, to give a boost to these small organisations, they should also manifest a policy for these small and medium scale enterprises to provide them with a location to set up their own plant so that one day India will become a leader the world in terms of technology and business.
The US can learn many lessons from India’s move towards a cashless economy, a top Silicon Valley expert has said while underlining that India “may have leapfrogged” American technology industry with simple and practical innovations.
“India may have leapfrogged the US technology industry with simple and practical innovations and massive grunt work. It has built a digital infrastructure that will soon process billions more transactions than bitcoin ever has,” top Silicon Valley expert on digital economy Vivek Wadhwa wrote in an op-e in The Washington Post. “With this, India will skip two generations of financial technologies and build something as monumental as China’s Great Wall and America’s interstate highways,” Wadhwa said in his op-ed titled ‘What the US can learn from India’s move toward a cashless society’.
Wadhwa argued that the Unified Payment Interface (UPI) launched by India has eliminated billing processor and transaction costs are zero unlike credit card payments. “There is no technology barrier to prevent a UPI from working in the US. Transfers would happen within seconds, even faster than the 10 minutes that a bitcoin transaction takes,” he said.
The top Indian-American expert also praised another Indian innovation India Stack, which is a series of secured and connected systems that allow people to store and share personal data such as addresses, bank statements, medical records, employment records and tax filings, and it enables the digital signing of documents. It will also transform how lending is done. Prime Minister Narendra Modi’s demonetisation policy announced on November 8, he wrote “was a bold move that will surely produce long-term benefit, because it will accelerate the push to digital currency and the modernisation of the Indian economy.”