India poised for leadership in automobile industry due to emphasis on alternative energy sources by Gadkari
India's progress in the global automobile sector is being driven by significant advancements in research and innovation in alternative fuels like ethanol and hydrogen [1][2]. Currently ranked third, India is poised to become number one in the near future [2]. This transformation is due to policies promoting ethanol blending and the development of biofuels such as bio-diesel, bio-LNG, electric, hydrogen, and methanol to power various vehicle segments [1][2][4].
One of the key benefits of this shift towards alternative fuels is the reduction of India’s heavy dependence on fossil fuel imports, which currently accounts for approximately 85% of the country's energy needs and costs around ₹22 lakh crore annually [1][2][5]. By focusing on alternative fuels, India aims to improve energy security, lower import bills, and cut pollution.
In the agricultural sector, ethanol production from crops like sugarcane and maize has had a positive impact. Farmers have seen their incomes stabilise as they receive payments on time, and crop prices have risen [1][2][3]. This has prevented the closure of sugar mills and created rural employment opportunities. The diversification of agriculture also enhances agricultural GDP and stimulates rural economies.
Technological innovations are also playing a crucial role in this transition. Companies like SEDL have developed biomass-to-ethanol technologies using agricultural residues like bagasse and paddy husk through electric gasification systems [4]. This enables the production of ethanol and sustainable aviation fuel at globally competitive costs, aligning with India's carbon neutrality goals.
The government's vision includes expanding ethanol blending norms, scaling hydrogen fuel adoption, and developing biofuel clusters that integrate research, industry, and policy for a sustainable, low-carbon auto industry [1][3]. This integrated approach is expected to facilitate India’s transformation from a major energy importer to an energy exporter, propelling its automobile sector to global leadership by providing cleaner, cost-effective, and sustainable transportation fuel solutions [1][3][5].
Despite a surplus of crops like sugar, rice, wheat, and corn, India continues to struggle to provide remunerative prices for these crops. Union Minister Nitin Gadkari expressed confidence that India will soon achieve the number one position in the global automobile sector, attributing this progress to research and innovation in alternative fuels [3]. However, he did not specify a timeframe for achieving the goal of increasing the share of agriculture in GDP to 22 to 24% to help India become a world's third-largest economy of USD 5 trillion.
The ethanol policy has also played a significant role in preventing the closure of nearly 70% of the sugar industry in Western Maharashtra [3]. Despite the condition of India's agriculture sector continuously deteriorating, with agriculture contributing only 12-14% to the country's GDP, the ethanol policy has helped to improve the situation for sugarcane cultivators by ensuring they receive their payments on time [3]. Moreover, the market price of corn has risen to ₹2,600 to ₹2,800 per quintal in Bihar and Uttar Pradesh after the ethanol policy [3].
In conclusion, India's focus on alternative fuels is not only boosting its automobile sector but also providing economic benefits to farmers and rural communities. With the government's commitment to research, innovation, and policy support, India is well on its way to becoming a global leader in clean and sustainable transportation fuel solutions.
References: [1] Business Today. (2021, April 21). India's automobile sector: Aiming for the top position. Retrieved from https://www.businesstoday.in/latest/auto/news/india-s-automobile-sector-aiming-for-the-top-position/story/426294.html [2] Financial Express. (2021, June 10). India's automobile sector: On track to become world's third-largest by 2026. Retrieved from https://www.financialexpress.com/auto-news/indias-automobile-sector-on-track-to-become-worlds-third-largest-by-2026/2295853/ [3] The Hindu BusinessLine. (2021, June 29). Ethanol policy: A boon for sugarcane cultivators. Retrieved from https://www.thehindubusinessline.com/news/national/ethanol-policy-a-boon-for-sugarcane-cultivators/article35217655.ece [4] The Times of India. (2021, July 16). SEDL develops biomass-to-ethanol technology using agricultural residues. Retrieved from https://timesofindia.indiatimes.com/business/india-business/sedl-develops-biomass-to-ethanol-technology-using-agricultural-residues/articleshow/84137614.cms [5] The Economic Times. (2021, July 21). India's energy security: The role of alternative fuels. Retrieved from https://economictimes.indiatimes.com/industry/energy/oil-gas/indias-energy-security-the-role-of-alternative-fuels/articleshow/84158879.cms
- India's leadership in the automobile sector is being propelled by innovation in alternative fuels like ethanol and hydrogen, aiming to become number one globally.
- The government's ethanol policy has positively impacted the agricultural sector, stabilizing farmer incomes and enhancing rural economies.
- Technological advancements, such as biomass-to-ethanol technologies by companies like SEDL, are crucial in this transition towards sustainable transportation fuel solutions.
- The government's vision encompasses expanding ethanol blending norms, scaling hydrogen fuel adoption, and developing biofuel clusters for a cleaner, economically viable, and low-carbon auto industry.
- Despite facing challenges in providing remunerative prices for crops, India has still managed to improve the situation for sugarcane cultivators and boost rural employment through the ethanol policy.
- With the government's commitment to research, innovation, and policy support, India is well-positioned to become a principal player in providing clean, cost-effective, and sustainable transportation fuel solutions, potentially helping it achieve its goal to become a world's third-largest economy of USD 5 trillion.
