India must avoid import dependence while aiming to achieve its energy transition targets, stated the Economic Survey 2024-25.
The Chief Economic Advisor to the Government of India, V. Anantha Nageswaran wrote in the Economic Survey, “energy transition plans must be mindful of geopolitical vulnerabilities and avoid deepening India’s dependence on external sources for critical imports.” Additionally, the Survey noted that there is a rising requirement for critical minerals with the rise in share of renewable energy and overall energy consumption, the supply chain of which is dominated by China.
Few days ago, the Union cabinet approved the National Critical Minerals Mission as a plan to boost the critical mineral mining in India.
The Survey report which was tabled at the Parliament on Friday also mentioned that public policy will have to recognise the role of energy security and energy affordability in enhancing and maintaining competitiveness. This would mean that the country has to forge its ‘own path to energy transition and diversification away from fossil fuels’.
For a country like India that has abundant renewable energy and coal, electric mobility makes economic sense. However, the survey noted that it also has certain challenges. This is because the import intensity of E-Vehicle production – especially from countries with whom India has persistent and large trade deficits- is very high. “Indigenising the technology and raw materials for electric mobility is an urgent task, “the CEA wrote in the Economic Survey.
Taking a dig at the developed countries for showing lack of commitment towards helping developing countries meet their climate goals, CEA Nageswaran in the Economic Survey also mentioned about the insufficient climate finance allotted at the recent COP29 summit.
