Minister of State for Finance and Corporate Affairs Anurag Thakur said that decreasing imports and increasing exports is a clear strategy that India will follow with support from industry and stakeholders.

Speaking at an event, the ministert said, “PM Modi has given us a clarion call when he gave us the vision of Aatmanirbhar Bharat. It does not mean closing down the economy, rather it means strengthening our manufacturing and strengthening manufacturing-based exports.”

He added that geopolitical issues make the cost of fossil fuels unstable and India needs to hedge these costs while staying committed to the global climate change commitments.

He expressed his concern that crude oil imports alone account for 20% of the India merchandise imports.

“India’s fiscal deficit is huge. Strengthening domestic manufacturing and shift to renewable energy is a fiscal necessity,” he said.

In 2019, India was ranked as the 4th most attractive market in terms of renewable energy. The Government is taking several steps in this direction that has established India as the 3rd largest solar market in India.

That said, he also recognized that manufacturing of RE components is in its nascent stage. India currently imports close to 80% of solar cells and modules from China. Installing large capacities in India, will require indigenous manufacturing to be boosted.

Financial support is being given by MNRE for setting up solar power plants. FDI inflow has increased to USD 42 billion, almost five times of what it used to be in 2014. USD 5.85 billion has been invested for RE evacuation.

The sector has seen strong participation from the private sector which has supported this growth. Government of India is committed to provide handholding and security to Indian manufacturing companies – providing long term policies for investment security. GOI plans to impose 20% Basic Customs Duty on solar components to be able to provide a springboard to the domestic manufacturing sector in renewable energy.