Back in 2021, India set forth a highly ambitious environmental goal. PM Modi announced that by 2070 the country will achieve net zero carbon emissions. However, the road towards this goal has been anything but easy.
Unlike countries in the West, developing nations need to consider a multitude of factors in order to create a sustainable energy transition process. But, with the right steps, India can not only achieve a green transition but also tackle its poverty crisis.
India has always heavily invested in building skills for the working sector and this has indeed helped the economic development. The push towards technical education and exports has helped the Indian economy go toe-to-toe with giants such as China. However, this has left many sectors unattended, including building the unskilled sector.
This is where manufacturing comes into play. With the right push, the manufacturing industry will develop high-quality jobs for both the skilled and unskilled workforce and also help achieve sustainability goals.
Domestic Energy Manufacturing is the Need of the Hour
India is currently falling short of its projected solar power development, which in turn is hindering its green transition process. The supply chains operating within domestic industries are heavily reliant on fossil fuels. The only way to change this reality is by developing manufacturing of renewable energy resources such as solar power and green hydrogen.
While this may seem like a long-drawn process, for achieving the 2070 net zero carbon emissions goal set forth, this is indeed the perfect step to take. Furthermore, it will stop the dependency on foreign resources to operate domestic industries. And since energy plays a great role in social development, it will create a multitude of jobs and help alleviate the poverty crisis.
Technological Advancement and its Role in Manufacturing
There is an overall fear regarding the development of manufacturing industries since AI is taking over many unskilled labour jobs. However, this is not true in the case of a developing country such as India. Once AI becomes widely used in domestic manufacturing, a large number of jobs will be created to maintain the efficient operation of AI systems.
So, not only will skilled jobs be created in the process, but the unskilled workforce will also have more options to upskill themselves and improve their quality of life. It has been proven that developing domestic manufacturing industries uplifts the quality of life of workers, and this is definitely something India can use right now.
The Bottom Line
As of last year, around 15% of India’s population earns less than INR 200 per day. So, one might think that to consider energy transition as an important goal is not the right step to take. However, with the help of domestic manufacturing, this goal can be achieved while also delivering job opportunities.
India needs a two-pronged solution, and top economists of the country are definitely taking cognizance of domestic manufacturing, especially the renewables sector. While this may not have quick returns, it is what the country needs to truly stand shoulder-to-shoulder with the global giants.
