The coronavirus pandemic has had an enormous negative impact on India’s economy. The current statistics show that India’s economy witnessed a 23% drop in the three months when the coronavirus pandemic numbers rose. The most affected industries in India are construction, manufacturing, transport, catering and trade. Details from the McKinsey Global Institute (MGI) report explained that the economy’s compression had been the worst in this pandemic period.
The study revealed that India could use the coming one-and-a-half years to restructure its economy by investing in sustainability, urbanization and manufacturing to open new jobs for the country to advance. The significant revamp of the economy could require the uptake of electric vehicles in the entire region.
The Delhi Electric Vehicle program is going to open the economy once over 500000 electric vehicles enter registration. The government will offer tax incentives and rebates that will facilitate the affordability of electric cars. The purpose of this program is to help the city resolve the pollution problem and accelerate economic growth. Nevertheless, the country must uphold the following strategies to accelerate the uptake of electric vehicles.
First, the country must establish charging stations at shopping facilities and retail centers. Since these facilities are still operational by half the regular business, they are ideal for charging stations to encourage more Indians to buy electric vehicles. The people will be sure there are charging points at the next retail outlet on their electric car’s journey. The Delhi Electric vehicle program will help the government develop over 200 charging stations annually, facilitating the development of charging stations at a separation distance of 3km in the next four years.
Next, the country must establish smart grids to connect the charging stations to renewables. Studies by the International Energy Agency (IEA) indicated that although the electric vehicle uptake increases electricity demand, they help minimize greenhouse gas emissions and fossil fuel usage. This strategy allows the country to realize the Paris agreement regulations on climate change by reducing carbon emissions.
Additionally, Delhi can partner with the national government to minimize excise duty on electric vehicle imports. This strategy will facilitate the uptake of electric vehicles in the whole country. The current collaboration between the central government and Delhi has availed incentives for buying and producing electric cars. To conclude, two governments can introduce negative incentives for ICE systems and other fossil fuel consuming projects. Pricing measures against ICE cars will inform the uptake of electric vehicles in the country.