It has been recently announced that India is planning to sell only electric cars in the near future, delighting environmentalists while disappointing the oil industry. With concerns pertaining to the rising prices of diesel and petrol, not to mention the alarming levels of pollution, the decision is being welcomed as a revolutionary move. Under the new plans of the Indian government, every single car sold in the country from 2030 onwards will necessarily be electric.
Oil Industry to Suffer from Waning Demand
Being the third-largest importer of oil, India receives more than $150 billion on an annual basis from this sector. This means that a shift from fuel-powered vehicles to electric-powered ones will be a major set-back for the oil industry. However, according to the current estimations, the revolutionary transition will scrimp almost $60 billion by 2030 in energy costs, simultaneously minimizing running costs for innumerable car owners in India.
Piyush Goyal, India’s Energy Minister says that although the government will be the primary investor sponsoring the initiative for the first three years or so, it is the swelling demand for electric vehicles that will drive the production of electric automobiles thereafter, not subsidies.
Pollution Control: A Key Objective
Every year, nearly 1.3 million people in India have been dying as air pollution takes a toll on their health. Studies reveal that 3% of the gross domestic product of the economy was lost because of growing toxic smog levels. Of the 20 cities worldwide with highest levels of air pollution rated by the World Health Organization (WHO), 13 are in India. The revolutionary change can reduce carbon emissions by more than 37%, finds research.