GST is undoubtedly one of the bold reformations that promised to change Indian economic landscape for good. It has led to standardization of indirect tax laws, thus making them business friendly and intelligible for investors. Cascading of taxation was also removed by GST, which was the biggest problem with previous tax regime. All this significantly leads to ease of doing business in India.
However, aside from offering benefits, has also presented some challenges for nascent solar industry of India. Indian solar industry made incredible strides in recent years reaching 21 GW installed solar capacity in 2018 Q1 from a meagre 10 MW in 2010. New projects are being introduced, and investor interest in Indian solar sector is growing. In this scenario, policy reformations could have opened up even bigger opportunities for growing solar industry, leading India out of energy scarcity.
Daily global CO2 emission level currently stands at 406.47 ppm (parts per million globally). Taking the hints from deteriorating environment, and identifying fossil fuel generation and consumption to be the primary reason for CO2 increase, the world is quickly adopting green energy. Since, global transport system plays a major role in adding to the CO2 levels, it is very important to bring the green energy utilization in transport systems as soon as possible. Since Solar energy has gained world wide acceptance due to its feasibility, easy to install, and reliability, solar energy growth and EV growth have become interconnected.
EV and Solar Energy Growth are Interconnected
Since India has made huge strides in renewable industry development, the country is considered to be an ideal platform for Electric Vehicle (EV) market growth. It is important to highlight that, 10 cities from top 20 most polluted cities in the world are in India, and a third of PM (particulate matter) pollution in India is from transportation sources. Additionally, in 2015-16 India’s crude oil imports are more than 80% amounting to $81.5 billion, and transport sector is the biggest consumer of crude oil with usage of 70% of diesel and 99.6% of petrol. Therefore, focusing on EV market growth depending on renewable energy (especially solar) would help India save billions of forex outflow, and reduce dependency in fossil fuels.