According to Commerce and Industry Minister Piyush Goyal, the Indian economy is a “bright star” in an otherwise depressing world. Speaking at a CII seminar on renewable energy, he added that efforts should be taken to keep India’s supply chain for this industry intact and avoid a situation similar to the pharmaceutical industry, when “our northern neighbor almost snatched away the entire industry.” The Covid-19 epidemic, according to the minister, has “shown us that we must be self-sufficient in the sources of renewable energy.”
Furthermore, he compared the renewable energy sector to the pharmaceutical industry, saying: “we should not allow a situation like that to happen in our renewable energy sector. Key starting materials and API were made in India, but some countries, particularly our northern neighbor almost took away the entire industry by making i.e. competitive and giving all kinds of sops, inviting our Indian companies to manufacture in that country, and have today become leading suppliers of equipment in the renewable energy space.
According to him, India has historically imported large amounts of materials like oil and cooking coal as well as machinery and other equipment needed for both traditional power sources and the renewable energy industry. Commodity prices have experienced significant fluctuations on numerous occasions in the past, as we’re seeing. Prices of these things have been prone to the geopolitical uncertainty that the world has faced, he further said.
He added that while there is a great chance to promote the development of the renewable energy sector and make it a worldwide supplier, energy security must be viewed as an essential component of both national and, in the current geopolitical climate, economic security.
He further added that self-sufficiency has the advantages of sustainability and economic security. Because of a geopolitical problem in a third country or when you’re not at all a player, you land up first suffering as an economy and which in some sense also has consequences on our national security.
In terms of sustainability, energy independence, and the energy security of other nations that “are all now facing severe stress and have over the last two-three years, suffered the consequences of the pandemic and then the war,” he said, India has the potential to make a significant difference to itself and the future of the world.
Author- Capital Market