India must leverage wind manufacturing and exports to become a multi-trillion-dollar economy

Despite the economic slowdown caused by the global pandemic, the Indian economy continues to recover and expand. Growing power demand, which is often considered to be an indicator of increasing economic activity, has been swiftly rising in recent months. To advance economic empowerment and boost multifaceted growth and prosperity, the Hon'ble Prime Minister set a vision of making India a five trillion-economy.

The states are being encouraged to set their target for translating this vision into a reality. The Economic Survey of India 2018-2019 has recognized private sector investment, which not just creates jobs in a specific enterprise, but rather the spillover is observed in the entire value chain, as a key element for the successful translation of vision into a reality. It further recommends the prioritization of inclusive opportunities that include the micro-small and medium enterprises (MSMEs) and drives exports resulting in an increased share in the global supply chain. 

In a 2020 report, acknowledging the manufacturing sector as an enabler of the multi-tier Indian economy by 2030, the McKinsey Global Institute suggested a three-pronged strategy — the creation of a manufacturing hub for global markets, enhancing competitiveness by leveraging technological edge , and harnessing renewable energy. In domestic and global markets, demand for renewable energy technology solutions is growing at a rapid pace. The central government’s “Make in India” and “AatmaNirbhar Bharat” initiatives are already driving the expansion of the domestic manufacturing sector which presently contributes 15% of the gross development domestic product (GDP) . 

Globally, over USD 440 billion was invested in renewable energy projects in 2021. As governments and the private sector continue to raise their ambitions for clean energy, renewable energy capacity addition, including installed wind capacity continues to grow. For example, despite force majeure and other major operational/supply chain issues, renewable energy capacity grew by 6% in 2021. This growth reduces reliance on the import of fossil fuels and builds resilience against import and fossil-fuel price volatility shocks. India has a target of adding a cumulative 500 GW of non-fossil-fuel capacity in this decade. Between 2018 and 2021, India’s installed renewable energy capacity grew by 40%.

Recognizing the huge potential and cross-linkages of promoting the manufacturing of renewable energy in the country, the Ministry of Power has invited an expression of interest (EoI) from prospective bidders for setting up manufacturing zones on a pilot basis for the energy and renewable energy sectors. This was comprehensive of all renewable energy technologies, including wind energy , which constitutes 10.2% of India’s installed power generation capacity from all sources.

The Global Wind Report, 2022 suggests that the emergence of wind manufacturing export hubs has successfully led to skilling and job creation in respective countries. Therefore, ramping up wind energy installations while scaling-up India’s wind manufacturing and export potential are directly linked to social, economic, climate, and environmental goals, most importantly these feed into India’s efforts for realizing the Hon’ble Prime Minister’s vision for a multi-trillion-dollar economy.

Source: Economic times