India and Bangladesh sign Standard Operating Procedure (SOP) to operationalize agreement on coastal shipping.

India and Bangladesh sign Standard Operating Procedure (SOP) to operationalize agreement on coastal shipping.

India and Bangladesh signed the Standard Operating Procedure (SOP) in New Delhi today, to operationalize the “Agreement on Coastal Shipping” signed between the two countries in June, 2015. The SOP was signed by the Joint DG (Shipping) Ministry of Shipping, Government of India and Chief Engineer and Ship Surveyer, Department of Shipping, Government of Bangladesh in the presence of Shri Nitin Gadkari, Minister of Shipping and Road Transport and Highways. Speaking on the occasion Shri Gadkari said that once it is operational, the Coastal Shipping Agreement will enable a huge saving in logistic costs of EXIM transport between the two countries.   The SOP has been framed as per the terms and conditions of the Agreement on Coastal Shipping and both India and Bangladesh have agreed to its provisions. Shri Rajive Kumar, Secretary Shipping Government of India and Shri Shafique Alam Mehdi, Secretary Shipping Government of Bangladesh were also present on the occasion. 

The Standard Operating Procedure will pave the way to promote coastal shipping between India and Bangladesh and would enhance bilateral trade between the two countries by bringing down the cost of transportation of EXIM cargo. The SOP contains provisions which stipulate that India and Bangladesh shall render same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation. The two sides have also agreed upon the use of vessels of  River Sea Vessel (RSV) category for Indo-Bangladesh coastal shipping.

The two countries will also hold Shipping Secretary level talks on 16^th Nov, 2015 which will cover the issues relating to MoU on passenger and cruise vessel movement, discussion on the protocol to operationalize the MoU on use of Mongla and Chittagong ports, payment of transit fees and bank guarantee, dredging of rivers in the protocol route using Regional IDA Assistance of World Bank Assistance, discussion on various upcoming port projects in Bangladesh.

India and Bangladesh have a Bilateral Protocol on Inland Water Transit and Trade (PIWTT) for operation of inland vessels on the river protocol routes between river ports of Haldia, Kolkata, Pandu, Karimganj and Silghat in India and Narayanganj, Khulna, Mongla, Sirajganj and Ashuganj in Bangladesh.  This protocol between the two countries has facilitated the movement of EXIM trade as well as cargo bound for the North Eastern states of India. Out of a total of 1.8 million tonnes of cargo moved on Indo-Bangladesh protocol route during 2013-14, about 98% is fly ash which is transported from Kolkata to various river ports in Bangladesh.  During the current financial year, India for the first time is using the Indo-Bangladesh river protocol to transport food grains via Ashuganj to Tripura.  However, the quantum of cargo has not picked up because of low draft in the upper reaches of Bangladesh rivers and also because of certain non-trade barriers. 

            Rapid growth in bilateral trade between India and Bangladesh has led to congestion on the road at Indo-Bangladesh border and at the Land Custom Stations/integrated Check Posts.  The traffic congestion at “Petrapole” and “Benapole” on the Bangladesh side has emerged as one of the biggest impediments to the movement of EXIM cargo. Due to such congestion, the exporters/importers on both sides have been facing undue increase in the transportation cost. 

The present connectivity through sea route with Bangladesh is through ports of Colombo and Singapore. The long sea route adds significantly to the transportation costs of EXIM trade. There is no significant cargo movement between sea ports of Bangladesh and India as it is not profitable for the big vessels to operate between these sea ports.  Under such circumstances there is a need for smaller ships to provide direct connectivity of eastern sea ports of India with Chittagong and other ports in Bangladesh. This, besides improving the connectivity will also provide competitive freight rates. 

            The biggest impediment in commencing coastal shipping between India and Bangladesh was the non-availability of River Sea Vessel class of vessels in Bangladesh. Bangladesh has foreign going vessels of higher technical and manning standards which are not cost effective for coastal voyage between the two countries.  The matter was discussed with Bangladesh side during the Secretary (Shipping) level discussion in Dhaka in July, 2012 and again in Delhi in February, 2013. 

            Several Joint Technical Committee (JTCs) meetings have also taken place between India and Bangladesh on the issue of coastal shipping.  The previous engagements finally culminated in a broad understanding on coastal shipping on 24^th June, 2014 in Dhaka. Thereafter, an Agreement on Coastal Shipping between Bangladesh and India was finalized and signed on 6^th June, 2015 during the visit of Hon'ble Prime Minster of India to Bangladesh. The cooperation in coastal shipping between the two countries would be based on the principles of national sovereignty, mutual benefits as per national laws and international conventions.

Advantages of  the Agreement:

1) The opening of coastal shipping between India and Bangladesh would enable the movement of cargo to the North East through coastal shipping upto Chittagong and thereafter by road/inland waterways.

2) The deep draft ports on the eastern coast of India can be ‘hub ports’ for the onward transportation of cargo to Bangladesh via the coastal mode through RSV category of vessels.

3) The Indian ports will attract enhanced cargo and also the overall transportation cost to Bangladesh will get reduced.

4) The Indian ports serving as trans- shipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade

Main statement by PM in the BRICS Leaders' Meeting

Main statement by PM in the BRICS Leaders' Meeting

Excellencies,

We can take pride in the economic initiatives of the BRICS. These will not onlystrengthen BRICS economies, but will also benefit the developing world.

As BRICS, we must place our priorities on the agenda and activities of G20.

One, in the area of development, G20 must place priority on

• effective implementation of Sustainable Development Agenda 2030 and ensure adequate funding for it.

Two, in the area of global finance, G20 should focus on

• Implementation of the decisions to restructure global economic institutions.

• Greater collaboration between multilateral and regional financial institutions.

• Enhanced long term finance for infrastructure in developing countries.

• Developing next generation, climate resilient infrastructure. This would also include converting waste into inputs for infrastructure.

• lower the cost of global remittances well before 2030

• close coordination on preventing corruption and cooperation on freezing of unaccounted money hoarded abroad and its repatriation.

Three, in the area of trade, we should focus on

• Strengthening the rule-based global trading system and ensuring that new trading blocs do not lead to division of the global trade regime.

• speeding up the completion of the Doha Development Agenda.

• promotinggreater mobility of skilled professionals and creating a global skill force market.

Four, in the area of climate change,G20's priorities should include

• a successful outcome at the COP21 based on the principles of UN Framework Convention on Climate Change, including the principle of common but differentiated responsibilities.

• Facilitate climate finance and technology transfer to developing countries.

• enhance research and development on clean and renewable energy to increase access, efficiency and affordability of clean energy.

• support development of next generation and climate resistant infrastructure.

• Support the India-proposed international solar alliance.

Five, G20 should promote stronger global action to address security challenges, including through

• comprehensive global strategy to put an end to finance, supplies and communication channels of the terrorists.

• stopping the flow of arms and explosives to terrorist groups.

• Creating special international legal regime to disrupt terrorist activities.

• cooperation in preventing the use of cyber networks by terrorist groups.

• early adoption of Comprehensive Convention on International Terrorism.

I am confident that BRICS economies will continue to be strong and stable and will remain a source of strength for the global economy.

Excellencies,

The Strategy for BRICS Economic Cooperation, which we endorsed in Ufa, is an important framework document.

The Contact Group on Trade and Economic Issues and Business Council should prepare a Work Plan for implementation of the Strategy in a time-bound manner.

Each BRICS member country should take the lead in at least two priority areas listed in the Strategy.

It would be appropriate if the first joint meeting is held during the Russian Chairmanship.

The joint sitting may also work on a Roadmap for Trade, Economic and Investment Cooperation till 2020.

Excellencies,

We hope that the New Development Bank will start its operations quickly. As I said in Ufa, its first project should be on clean energy, preferably across all BRICS countries.

We need to create a supporting mechanism, such as a New Development Bank Institute or NDBI, which should function as bank of ideas, a storehouse of experience and a knowledge powerhouse. It can also provide inputs for the Contingency Reserve Arrangements.

Excellencies,

India will continue to work closely with our BRICS partners in the spirit of mutual trust, respect and transparency.

I had shared some ideas at Ufa. These included trade fairs; agriculture research; railway research; digital initiative; energy efficient technologies; cooperation between states, cities and local bodies; promoting films and sports exchange.

We will be building upon them and putting more new ideas on the BRICS agenda.

We will work with you to further strengthen the institutional mechanisms of BRICS.

I look forward to seeing you in India for the 8th Summit next year.

Prime Minister Narendra Modi proposes 7-point agenda on ‪#‎ClimateChange‬; calls for target date before 2030 to reduce high costs of transferring remittances.

Speech by the President of India, Shri Pranab Mukherjee at the inauguration ceremony of the 35th India International Trade Fair 2015

Speech by the President of India, Shri Pranab Mukherjee at the inauguration ceremony of the 35th India International Trade Fair 2015
1. It is indeed a pleasure for me to be here today for the inauguration ceremony of the 35th India International Trade Fair (IITF), which is the flagship event of India Trade Promotion Organisation (ITPO).
2. I am particularly glad to find considerable participation of companies from the SAARC region. Our South Asian neighbours are our highest priority in keeping with our ‘neighbourhood first’ policy. Our approach to South Asia has always been one of seeking shared prosperity and security. The fact, however, is that our region remains amongst the least integrated and developed, underlining the need for greater co-operation and intensification of our trade effort.
3. In this context, it is good to see Afghanistan as the ‘Partner Country’ and Bangladesh as the ‘Focus Country’ in IITF 2015. Through closer economic co-operation with Afghanistan, India can provide not only a vast and growing market for its goods and services, but can also be a source of capital, technology, best-practices and institutions appropriate for Afghanistan’s needs.
4. Bangladesh is one of the faster growing economies in the region. It is emerging as a sound manufacturing base for multinational companies in sectors like textiles. The potential for both our economies to grow together is high, given our resources. Like India, Bangladesh is a nation with a significant population in the productive age group, with 65 percent of her 159 million people falling in the 15 to 64 years age category. Our countries already cooperate in a wide spectrum of economic activities like trade and commerce, and power sector. Our respective economic progress must provide greater opportunities to both our peoples.
Friends:
5. I take a moment here to mention about Madhya Pradesh, which is the Focus State for IITF 2015. Innovative measures have seen this State making progress on all fronts, particularly agriculture, where the growth rate has been close to 20 percent during the last two years.
6. I also compliment Goa and Jharkhand, the Partner States, for their participation in this prestigious event. Goa is one of the fastest growing states in the country and amongst the leading states in per capita income. Goa’s well-developed social, physical and industrial infrastructure and IT connectivity has led to a strong economic performance, particularly in industrial sectors like mining, tourism and pharmaceuticals.
7. Jharkhand is located in one of the richest mineral zones in the world. It accounts for 40 percent of India’s total mineral reserves. Jharkhand ranks first in coal reserves and second in iron ore reserves. Given its distinct location advantage, the potential for industrial development is high. This State produces 17 percent of the total iron ore produced in the country.
Ladies and Gentlemen:
8. The IITF is a brand name in itself and enjoys recognition worldwide. This annual celebration of trade and industry aims to deepen our bilateral relations with the rest of the world. In the realm of external relations, the Government of India has intensified our engagement with neighbours and friendly countries across the globe. Recently in the last week of October, we successfully conducted the 3rd India-Africa Forum Summit. The participation of all 54 African nations in the Summit has, in foreign policy terms, moved us into a select group of nations having the capacity and ability to engage all of Africa simultaneously. India is also working with like-minded countries in multilateral organisations, including the United Nations, to play an enhanced role in diverse fora, from the Arctic Council and the Pacific Alliance to the UN Security Council, where India has made a legitimate claim for permanent membership. The potential of India now has a stronger resonance.
9. IITF 2015 presents an ideal platform for the global fraternity which has a shared interest in trade relations to enhance peace and prosperity. India’s efforts for inclusive economic growth and social advancement have shown the way forward to many developing countries. This is a time of great opportunities in India. Several recent initiatives of the Government of India have already started showing results and have created a positive impact in key sectors. The ‘Make-in-India' initiative to make India an investment and manufacturing destination; the ‘Digital India’ programme to transform India into a digitally-empowered society; ‘Start-up India, Stand-up India’ to promote entrepreneurship and job creation; ‘Smart Cities’; ‘Model Villages’; ‘Swachh Bharat’, and the ‘Clean Ganga Mission’ are some of the flagship schemes of the Government. In the last year alone, almost 140 million bank accounts have been opened under ‘Jan Dhan Yojna’ in a massive effort at financial inclusion.
Ladies and Gentlemen:
10. Our economy has admirably withstood the challenging global economic scenario of the past few years. Despite the economic slowdown afflicting major economies of the world, India has remained largely insulated. Barring a below-five percent growth in one year – that is in 2012-13 – our economy has shown resilience. The economic scenario is again looking up with 7.2 percent economic growth in 2014-15. It is expected to improve further as other macro-economic indicators show substantial improvement. Inflation is within control and industrial performance is also showing signs of revival. Fiscal consolidation measures are in place and we should be able to meet the target of 3.0 percent fiscal deficit by 2017-18.
11. The external sector should not be a cause of concern despite a not-so-encouraging export performance last year. Slowdown in global economic activity also finds reflection in decreasing imports, with a substantial reduction in our import dependence on oil, from US Dollar 165 billion in 2013-14 to US Dollar 138 billion. As such, our current account balance has improved with the deficit on this account having reduced from 1.7 percent of GDP in 2013-14 to 1.4 percent in 2014-15. Foreign exchange reserve at 350 billion US Dollars as of end September is at a comfortable level. With a favourable global economic outlook, our diversification strategy focusing on export markets in Asia, Africa and Latin America, and our push for the Make-in-India campaign, I expect to see a turnaround in our export performance soon. The opportunities that are emerging in our economy are there for the taking. Investors, both domestic and foreign, should have the confidence to gain handsome returns from their investments in India.
Ladies and Gentlemen:
12. IITF is closely linked to sustained economic growth and trade. We are a 2.1 trillion dollar economy and have the potential to be a 10 trillion dollar economy over the next two decades, provided we are able to provide a fillip to manufacturing and innovation. The centrality of the ‘Make-in-India’ campaign towards the achievement of this goal cannot be over emphasized. I am therefore pleased to note that the theme for this edition of IITF is ‘Make-in-India’. Both ITPO and the Ministry of Commerce have a vital role in making the ‘Make-in-India’ programme a success. It is a matter of satisfaction that the Ministry of Commerce and Industry has taken major reform initiatives on improving the ‘Ease of Doing Business’ in India with added emphasis on simplification and rationalization of the existing rules and enhanced use of IT to make governance more efficient and effective.
13. The IITF endeavours to preserve, protect and promote India’s cultural heritage through collaboration amongst Government, industry, and artisans, craft persons and weavers. This is with a view to establish marketing linkages and promote their products in the business world. I am sure that IITF will take the lead in reinforcing Indian brands. Promising Indian brands can compete and win against dominant international brands in the Indian market before successfully venturing overseas. Successive editions of the trade fair have also proved to be an excellent platform for small and micro enterprises which display their products at different pavilions.
Ladies and Gentlemen:
14. The ITPO has taken several initiatives this year to improve facilities offered to visitors. Some of them, including the facility for online registration for business days; introducing a separate award category for the best State pavilion dedicated to ‘Swachh Bharat’ initiatives; and providing details of the fair through mobile applications, are praiseworthy. I compliment ITPO and its supporting agencies for organizing the Fair with improved logistics and facilities.
15. I am confident that this Fair will provide a renewed impetus to trade and commerce and deepen our economic relationship with our trading partners across the globe. I extend my good wishes to all the participants from India and abroad. Best of luck for a successful conduct of the Fair. With these words, I declare the 35th edition of the India International Trade Fair open

Defence Minister Hands Over ‘Maareech –Advanced Torpedo Defence System’ to Indian Navy: Dedicates ‘Hydrodynamic Test Facility’ to the Nation

Defence Minister Hands Over ‘Maareech –Advanced Torpedo Defence System’ to Indian Navy: Dedicates ‘Hydrodynamic Test Facility’ to the Nation

The Defence Minister Shri Manohar Parrikar today dedicated to the nation the Seakeeping and Manoeuvring Basin (SMB) during a function held at Naval Science and Technological Laboratory (NSTL), Visakhapatnam, in the august presence of Chief  of  Naval Staff Admiral RK Dhowan and  Secretary, Department of Defence R&D and Director General, DRDO,  Dr S Christopher. The Minister also handed over the Maareech - Advanced Torpedo Defence System developed by DRDO to the Navy Chief.

SMB facility is one of its kind in the country, set up as a joint effort of   DRDO and Indian Navy. The facility puts India among the few nations in the world having the capability to undertake comprehensive hydrodynamic model testing of naval platforms and weapon systems. SMB would help to design and build state-of-the-art naval combatants such as submarines, ships, torpedoes, etc.

Maareech, a joint project of Naval Physical and Oceanographic Laboratory (NPOL), Kochi and NSTL, Visakhapatnam is a state-of-the-art indigenous system for torpedo detection and countermeasures. This system offers a complete solution to detect and locate the incoming torpedo and to apply countermeasures to protect naval platform against torpedo attack. Two production grade Maareech systems have been developed and user evaluation trials completed onboard two Indian Navy ships.

Complementing the vital role of DRDO towards self-reliance and promoting the Make in India efforts, the Defence Minister said the development of complex system - Maareech is an excellent model of synergy between DRDO, Indian Navy, public and private industries, demonstrating yet another milestone in Make in India program.

Later the Defence Minister gave away the prestigious DRDO National awards to DRDO Scientists across the country for their significant contributions and achievements made towards development of various weapon systems and technologies.

The landmark function was attended by Member of Parliament Dr K Hari Babu and MLA Shri P Vishnu Kumar Raju along with a large number of officers of the DRDO and Armed Forces, members of the academia, civil administration and other invitees.

India, UK sign civilian nuclear deal, seek to foster financial ties

British and Indian companies will sign collaborations worth more than £9 billion ($13.7 billion) during Prime Minister Narendra Modi’s three-day visit to the UK, his British counterpart David Cameron said on Thursday as the two nations signed a civil nuclear deal, pledged to collaborate in defence and cyber security and geared up to launch a railway rupee bond worth more than £1 billion.
Cameron told a news conference that London wanted to support Modi—the first Indian premier to visit the UK in nine years—in his vision of transforming India with improved infrastructure and education.
“We want to become your number one partner for supporting the finance needed for (Modi’s) ambitious plan, making London the world’s centre for offshore rupee trading with the issue of over £1 billion in bonds including the first government-backed rupee denominated bond,” he said
“During this visit British and Indian companies are announcing new collaborations together worth more than £9 billion,” Cameron said.
Modi described the conclusion of the civil nuclear pact as “a symbol of our mutual trust and our resolve to combat climate change”.
Modi highlighted plans for India to use London as a financial base for fund-raising. “We are going to use the London market for fund-raising even more and I am happy to announced that we are set to launch a railway rupee bond in London. It is appropriate as the journey of Indian Railways started in the UK,” Modi said.
After arriving in the British capital on a much-anticipated visit, Modi was given a guard of honour by the 48-member F Company Scots guard accompanied by the regimental band of Irish guards. Cameron came out from 10 Downing Street to receive Modi before the two leaders started a nearly 90-minute meeting at the office of the British Prime Minister.
Other senior ministers present include foreign secretary Philip Hammond, employment minister Priti Patel and business minister Sajid Javid. On the Indian side, the delegation included high commissioner to the UK Ranjan Mathai, foreign secretary S. Jaishankar and National Security Advisor Ajit Doval.
The UK ranks 18th in the list of India’s top 25 trading partners and two-way trade in 2014-15 stood at $14.34 billion. The UK is the third largest inward investor in India, after Mauritius and Singapore, with a cumulative investment of $22.26 billion between 2000 and 2015. Modi’s talks with Cameron were set to continue at the British Prime Minister’s country residence of Chequers in Buckinghamshire, where he was being hosted overnight.
Also on Thursday, Cameron reiterated British support for India’s candidature for permanent membership of the United Nations Security Council, while Modi spoke warmly of Britain as India’s gateway into Europe.
“We continue to see the UK as our entry point into the EU,” Modi, speaking via a translator, told reporters.
Cameron plans to hold an in-out vote on Britain’s membership of the EU by the end of 2017.
In a speech to the British parliament later on Thursday, Modi spoke of India’s “commitment to individual freedoms and rights” and hoped economic ties between the two nations would grow by leaps and bounds, with cooperation in the areas of defence equipment, science and technology, and reneweable and nuclear energy.
On terrorism and extremism, Modi told the British lawmakers that the world “must be in one voice and act in unison” to combat the challenge. He urged the world community to agree and sign and international convention on terrorism and to make “no distinction between terrorist groups”.
On climate change, another area where India is expected to play a major role, Modi pointed to the importance of the principle of common but differentiated responsibility, which acknowledges the greater responsibility of those industrial nations that have contributed more to climate change than emerging economies. “Those who have the means and knowhow”, Modi added, must help the world combat climate change.
Britain was the first Western country to end a visa ban on Modi, imposed after the 2002 riots in Gujarat, when he was chief minister of the state.
The day was also marked by several protests against Modi outside 10 Downing Street. Protesters included those who want to see punishment meted out to those responsible for the Gujarat riots, as well as Nepalis who want an end to the blockade of Nepal.
India will be looking at attracting more British investments into India in the areas of defence manufacturing, and there could be an agreement for Britain’s BAE Systems to sell 20 more Hawk trainer jets to India.
“The primary agenda of the prime minister will be to attract more British investment into India,” said Prashant Mehra, partner at Grant Thornton India Llp, an investment advisory firm with offices in Delhi and Mumbai. “India has received $30 billion in foreign direct investment in the first six months of this calendar year. At home, the Prime Minister has put in place measures to increase the ease of doing business. Abroad, he has been working on getting investments into India. Britain is a key market for India as well. Indian companies are present in numbers in Britain as the language (for business) is English, the laws are similar, Britain is strategically located (for reaching European markets). So Britain in the past few years has emerged as our top three business partners,” Mehra said.
With India seen as more stable than other emerging economies, “there is a lot of optimism about India in Britain”, he added.
Meanwhile, in New Delhi, the opposition Congress urged Modi to ask British authorities to deport former Indian Premier League chief Lalit Modi, who fled to London in 2010 after the Enforcement Directorate initiated an investigation against him for alleged foreign exchange irregularities.
“The Congress Party hopes and demands that the Prime Minister takes up the issue... with his British counterpart, and ensures his deportation to India at the earliest,” the party said in a statement.

Five charts that show how India’s dependence on fossil fuels will increase

The IEA expects India’s oil demand to rise the fastest—by 6 million barrels per day to 9.8 mb/d in 2040 

China has driven the world energy market in recent years. However, the International Energy Agency’s (IEA) World Economic Outlook (WEO) 2015 projects that India will see the fastest growth in energy demand by 2040 as China effects structural changes to its economy, such as moving towards services.
The IEA expects global energy demand to grow by a third from the current levels by 2040. India’s is expected to double even after energy efficiency gains—the overall energy intensity of India’s economy is expected to reduce from 0.11 tonnes of oil equivalent (toe) per $1,000 of gross domestic product (GDP) in 2013 to 0.05 toe per $1,000 of GDP in 2040. Then, India’s energy use will more than double to reach 1,900 million tonnes of oil equivalent (Mtoe). Led by coal, the share of fossil fuels in India’s energy mix will rise to 81% by 2040 from 72% in 2013.
India’s coal consumption will reach 1,300 million tonnes of coal equivalent (Mtce) in 2040. This will be 50% more than the combined demand of all Organisation for Economic Cooperation and Development (OECD) countries and second only to China. Power generation and industrial usage will account for most of this consumption.
The IEA expects India’s oil demand to rise the fastest—by 6.0 million barrels per day to 9.8 mb/d in 2040. It projects that oil production will fall behind demand, pushing oil import dependence above 90% by 2040.
The transport sector alone is expected to account for two-thirds of the rise in oil demand with 260 million additional passenger cars, 185 million new two- and three-wheelers and nearly 30 million new trucks and vans being added to the vehicle stock. The shift from fuelwood to LPG for cooking in households will also drive this demand.
Although India’s energy mix won’t change much, renewables and nuclear will grow very fast, albeit from a very small base. Within renewables, solar and wind will emerge as a major provider of energy.
What are the key factors that will drive this rise in energy use?
Urbanisation is one factor. The IEA expects an extra 315 million people to move to towns and cities by 2040. The agency also factors in India becoming the most populous country by 2040 and its economy growing by five times by 2040.
The construction industry will expand with the rise in urbanization: its constituent sectors such as steel and cement are particularly energy intensive. The infrastructure investment called for by programmes such as the Smart Cities programme will also hike energy usage. A shift to manufacturing, as envisaged by the Make in India programme, will also have an impact, as manufacturing industries consume more energy than services sectors.
The IEA report warns that India must prepare for the fallout of the rise in energy consumption, chiefly air pollution and water stress.
To what extent will India’s emission reduction pledges help reduce energy demand?
If there is no change from current policies, India’s total primary energy demand would rise to 2,091 Mtoe in 2040. But under the so-called New Policies scenario (which is IEA’s baseline scenario and the basis for the numbers in this story), it will be 1,908 Mtoe, mainly because of gains in energy efficiency.
As part of its emission reduction commitments, India has promised to ensure that renewables would account for 40% of electricity generated in the country by 2030. At this rate, the IEA calculations show that renewables will account for 43% of all power generated in India in 2040.
Still, under all scenarios, India’s energy-related carbon dioxide (CO2) emissions are higher in 2040 than in 2013 and the country will be the single-largest contributor to the rise in emissions over this period. By then, India’s emissions per capita will converge towards the global average of 3.2 tonnes per capita versus a global average that edges downwards to 4.1 tonnes of CO2 per capita.

India will account for the largest growth in oil consumption

Change in oil demand by selected countries and regions in the New Policies Scenario, 2014-2040 (Oil consumption in million barrels per day 

By 2040, renewables will account for almost half of the power generated in India 

Power generation capacity by type in India in the New Policies Scenario (GW)

20002010202020302040

▲

2000

Other renewables

73

Thermal (oil, gas)

25

Hydro

11

Natural gas

3

Nuclear

1

Other renewable

Coal will continue to dominate India's energy mix

Primary energy demand by fuel in India in the New Policies Scenario (%)

20002010202020302040

▲

2000

1

Renewables

35

Renewables

33

Coal

25

Oil

5

Natural Gas

1

Nuclear

India