Subsidies for EVs and renewable energy double in FY23

This was witnessed during the April-November period of 2022

December 21, 2022

The smartphone shipments saw an increase of 110% compared to April-November period of 2021

About 40% of the smartphones shipped from India are iPhones

Smartphone exports stood between US$ 440 and US$ 700 million per month between April-August of FY23

The average exports since September 2022 have been nearly US$ 1 billion each month

The subsidies for renewable energy and electric vehicles in India more than doubled in FY23, according to a study by the International Institute for Sustainable Development (IISD). 

According to the report, subsidies for renewable energy increased from INR 5,774 crore in FY22 to INR 11,529 crore in FY23, while support for electric vehicles reached a record high of INR 2,358 crore, rising by 160% from INR 906 crore. 

Media reports said that this rise is the result of greater policy stability, a 155% growth in the installation of solar photovoltaic cells, and the economic rebound from the pandemic. Subsidies for coal, fossil gas, and oil amounted to INR 60,316 crore in FY23. Additionally, oil and gas subsidies reached INR 44,383 crore in FY23.

India provided about INR 5 trillion to support the energy sector in FY23, of which subsidies accounted for INR 2.2 trillion.

In FY22, the government spent 9 times more on fossil fuels than the amount spent on renewable energy. However, the number decreased to four times in FY23. Experts said that over the next few years,  the government has to increase its support measures including subsidies, public finance, and investments by public companies for India to reach the 500 GW of non-fossil capacity target by 2030, and become net-zero by 2070. 

Regarding social costs, the report said that the usage of fossil fuels costs Indian anywhere between INR 14 trillion and INR 35 trillion. 

Companies, on the other hand, should invest in research and development for better, efficient technologies for grid systems and energy storage, among other things. 


Source: Economic Times

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