India’s Economy on Track for Massive Growth Amid Decarbonization Efforts » Capital News

Oct 7 – India’s economy is set to double in size by FY 2030-31, with nominal GDP projected to surpass $7 trillion, up from $3.6 trillion in the last fiscal year. This growth will position India as the third-largest economy globally. As the fastest-growing large economy, India’s ambitions are not just focused on growth but on ensuring sustainability. The country has committed to reducing CO₂ emissions by one billion tonnes and lowering carbon intensity by 45% by 2030, aiming for net-zero emissions by 2070.

India has made significant strides in renewable energy, boasting the fastest pace of capacity additions among major economies. Its decarbonization strategy is heavily focused on key industries like automotive, power, steel, aviation, cement, and agriculture, which together are major contributors to the country’s carbon emissions. This focus is critical, given that India is the third most polluted country in the world. In 2019 alone, pollution caused 1.67 million deaths and led to $36.8 billion in economic losses.

Tackling Emissions in the Trucking Sector

A significant portion of India’s pollution comes from diesel-powered heavy commercial vehicles, responsible for about 12-14% of CO₂ and particulate emissions. With India transporting 4.6 billion tonnes of freight annually, 97% of which is moved by medium and heavy-duty trucks, the sector is a major pollution source. Although trucks make up just 3% of the total vehicle fleet, they contribute 53% of particulate emissions.

The number of trucks is projected to grow from 4 million in 2022 to over 17 million by 2050. Continuing to rely on conventional diesel trucks would cost India more than $1 trillion in crude oil imports by 2050. As a result, there is a pressing need to decarbonize the trucking industry by scaling up Zero Emission Trucks (ZETs), such as battery-electric trucks (BETs) and fuel-cell electric trucks (FCETs).

Studies suggest that scaling up ZETs could reduce cumulative particulate matter (PM) and nitrogen oxide (NOx) pollution by 40% by 2050, leading to 2.8–3.8 gigatonnes of CO₂ savings, equivalent to India’s entire annual greenhouse gas emissions today. While the environmental and health benefits of reducing pollution are clear, the transition faces challenges, such as the high cost of ZETs—2 to 6 times more expensive than diesel trucks—and the strain they place on the electricity grid. Additionally, many Indian truck manufacturers are hesitant to invest in alternative fuel technologies due to narrow profit margins.

Government and Industry Push for Sustainable Solutions

For India to achieve its 2070 net-zero target, at least 79% of the trucking fleet must be electric. Several initiatives are underway to reach this goal. NITI Aayog’s e-FAST (Electric Freight Accelerator for Sustainable Transport) is working with government agencies, private companies, and global organizations like the Smart Freight Centre (SFC) to accelerate freight electrification. SFC India has been conducting ZET Enablement Workshops to address the financial, technological, and policy challenges hindering the adoption of ZETs.

At the state level, Telangana is leading the way by committing to the Global Drive to Zero Memorandum of Understanding, with goals to transition 30% of new medium and heavy-duty truck sales to electric by 2030 and 100% by 2040. The state’s Electric Vehicle and Energy Storage Systems Policy has already increased electric vehicle penetration from 0.2% to 6% since its launch in 2020. Additionally, Telangana’s Mobility Valley (TMV) is aiming to build a comprehensive electric vehicle ecosystem, with an investment of Rs 50,000 crore over the next five years. TMV’s ZET Accelerator initiative is set to drive ZET pilot projects across the state, marking a significant step toward decarbonizing the trucking sector.

On a national level, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with an outlay of Rs 10,900 crore, provides subsidies, scrappage incentives, and long-term contracts for ZETs. More initiatives like these are needed to make ZETs viable, particularly for small fleet operators and individual truck owners who dominate the sector. Strict emissions standards will also be essential for meeting India’s 2070 net-zero target.

As financial incentives, supportive regulations, and infrastructure developments continue to grow, Zero Emission Trucks will become increasingly viable, helping India reduce its carbon footprint and achieve long-term sustainability.

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(The author is Director of Automotive and EV sector, Industries and Commerce Department, Govt. of Telangana)

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