Connect with us

Reports

India Charged to be Global Hotspot for Electric Mobility

MD Staff

Published

on

Following a strong central government push towards EVs, India has the potential to become one of the largest EV markets in the world.

New analysis released today by the World Economic Forum and the Ola Mobility Institute shows there are 10 states and UTs that are building momentum for EV usage in three sectors: manufacturing, infrastructure and services. Given India’s role as part of the global big four automotive players (alongside China, Japan and the United States), large-scale changes to the Indian market would affect the industry’s global footprint.

The report, EV Ready India – Part 1: Value Chain Analysis of State EV Policies, examines programmes and policies in Andhra Pradesh, Bihar, Delhi, Karnataka, Kerala, Maharashtra, Tamil Nadu, Telangana, Uttarakhand and Uttar Pradesh. It highlights the opportunities for the sector and builds a common framework for analysing state EV policies through trend analysis of value chains.

“With many more states in the process of designing their EV policies, policy-makers, businesses and practitioners alike can use this framework to analyse state policies for sustainability and longevity,” said Christoph Wolff, Head of Mobility, World Economic Forum. “The role of government is crucial for accelerating adoption. Right now, the uptake of electric vehicles is slow due to the high upfront cost and range anxiety, but long-term investment in R&D will create sustained growth.”

“India has taken up an ambitious target to become a $5 trillion economy by 2025,” said Anand Shah, Head, Ola Mobility Institute. “the country has placed equal importance on growth that is environmentally sustainable. Mobility holds significant promise for India to enable low-carbon solutions. OMI, in partnership with the World Economic Forum, intends for this framework to support the country’s readiness to go electric.”

While the approaches vary among these states and UTs, the report highlights three emerging trends. The first is that most states aspire to be manufacturing hubs for EV and EV components. Production of clean-fuel batteries, recycling and storage are wholly incentivized. This aligns with the national Make in India agenda and can provide case studies for how to roll out similar production facilities. For example, the Uttar Pradesh and Maharashtra EV policies emphasize promoting EV manufacturing.

The second trend, infrastructure development, was largely a response to anxiety about the range of EVs: i.e. most states have provisions for installations of charging infrastructure in public and private places. Uttar Pradesh is targeting 2 lakh charging stations by 2024 while Andhra Pradesh is targeting 100% electrification of buses by 2029.

The third trend is an emphasis on the services the EV value chain can provide through public awareness. These include skilling programmes in Tamil Nadu, fiscal incentives in Maharashtra and non-fiscal incentives like retrofit services in Telangana. These are all examples of how states and territories try to connect consumers and manufacturers.

Next steps

Fuelled by the national agenda of electrification and bolstered by government-led initiatives, the public and private sectors alike have commenced their respective and joint transitions to electric mobility. But, the uptake of EVs has been slow reflecting their high upfront and lifecycle costs. To overcome these challenges, funding is required for research centres and centres of excellence, which in turn, would boost overall R&D in the sector and subsequently manufacturing. Reflecting the nascent nature of the market, government backing and direction is crucial for accelerating adoption and deployment of electric mobility. “For a price-sensitive market like India, developing incentives for electric (clean) kilometres run versus electric vehicles purchased makes economic sense and is suggested to be the guiding principle for the national strategy,” Wolff said.

The World Economic Forum’s 33rd India Economic Summit is taking place in New Delhi from 3-4 October under the theme Innovating for India: Strengthening South Asia, Impacting the World. The two-day meeting will convene more than 800 leaders from government, the private sector, academia and civil society with the aim of accelerating the adoption throughout South Asia of Fourth Industrial Revolution technologies and making the most of the region’s distinctive demographic dividends.

Continue Reading
Comments

Reports

U.S: Extending support and lowering regulatory barriers could energize the recovery from Covid-19

Newsroom

Published

on

Swift action by the U.S. government has helped shield households and businesses from the immediate economic shock of the Covid-19 pandemic, even as efforts continue to bring the spread of the virus under control. Continuing this exceptional support to unemployed workers and struggling firms – while taking steps to lower barriers to labor mobility and competition – would help to strengthen the recovery, share the benefits across society, and reduce the risk of long-lasting scars, according to a new OECD report.

The latest OECD Economic Survey of the United States says that even as some businesses reopen with the lifting of coronavirus confinement measures, hard-hit sectors like hospitality and leisure will continue to need support, as will newly unemployed or displaced workers who may need to look for jobs in different sectors. The recent extension of the US Paycheck Protection Program by five weeks to August 8 is a welcome move to help small businesses struggling with the crisis. Extending exceptional unemployment benefits beyond the end-July cut-off date would offer a similar lifeline to the millions of households at risk of falling into poverty, as would assistance for job search (such as employment placement services) and support for geographic mobility.

“The U.S. economy is battling a health and economic shock that threatens to set back the significant economic achievements of the past decade and leave permanent scars,” said OECD Secretary-General Angel Gurría. “Exceptional support to people and businesses should be continued as long as it is needed. And helping people to return to work by removing unnecessary regulatory hurdles to employment and mobility would energize the recovery and help ward off a drop in living standards and equality.”

The Survey projects only a gradual recovery after the Covid-19 pandemic brought a decade-long expansion to an abrupt halt and knocked the employment-to-population ratio to its lowest level on record. The best-case scenario sees GDP growth recovering to 4.1% in 2021 after a drop of 7.3% in 2020, whereas a second wave of outbreak scenario would see GDP growth at just 1.9% in 2021 after an 8.5% drop in 2020.

Improving health policy co-ordination across levels of government, ensuring health insurance systems do not let large population groups fall through the gaps that exist between different programs, and reducing regulatory barriers, would all help to tackle the ongoing health crisis from Covid-19. To minimize the risk of a second wave prompting another large-scale lockdown of the economy, developing testing, tracking, tracing and isolating procedures will be key. Augmenting the capacity of health systems and identifying people who have acquired antibodies will help mitigate the economic impact of a second wave.

On the economic front, all efforts should focus on reviving growth and jobs for the long-term, with concrete policy measures to remove barriers hindering access to employment and future opportunities.

Addressing occupational licensing and non-competition covenants in job contracts that impose barriers to job mobility on roughly one in five workers, particularly those from low-skilled or disadvantaged groups, is a top priority. While regulation is important to ensure the safety and quality of services for workers and consumers, state-level labor market regulation has contributed to a decline in labor market fluidity since the late 1990s, alongside a period of sluggish productivity growth. (See Survey Chapter 3 for an analysis of variations in licensing stringency by state.)

States should be encouraged to delicense occupations where there are limited concerns for public health or safety and act against anticompetitive behavior. Federal law can be used to impose recognition of out-of-State licensures, allowing States to set stricter requirements only if they can prove it is necessary to protect the public. People who face difficulties finding work, for example those without a college education, should be supported through more flexible rules on job qualifications and access to adult training.

Restrictive building policies have also created a barrier to labor mobility just as a shift from industry to high-tech and services is changing the country’s economic geography and creating a need for more elastic housing supply. In the current climate, it is all the more important that people can move easily to take up new jobs. Tax incentives can be a way to loosen over-restrictive building laws, the Survey says.

The Survey also notes that vulnerabilities in the highly leveraged corporate sector will need to be monitored. Over time, given the pre-existing pressures of an ageing population, reforms to pension and healthcare spending to reduce cost pressures and inefficiencies and measures to broaden the tax base will be needed to ensure long-run sustainability of public debt.

Continue Reading

Reports

Evaluating and learning from the pandemic response

Newsroom

Published

on

The COVID-19 pandemic is testing the strengths and exposing the weaknesses of governments, defence, security forces and the private sector in their crisis preparedness and response. In order for future responses to be more robust and resilient, governments will need to understand how these actors collaborate and map leadership priorities.

PwC’s new report, “Evaluating and learning from the pandemic response,” identifies the connections and chains of command that government institutions and private entities need to implement to work effectively against the complex threats of the 21st century. It offers a structured approach to mapping these links between institutions to determine any weaknesses. Contributors to the report include Malcolm Brown, former Deputy Minister of Public Safety in Canada; Sir Craig Mackey, former Deputy Commission of the Metropolitan Police Service in London; and Peter Van Uhm, retired general and former Chief of Defence of the Netherlands.  

Using PwC’s Security Ecosystem Assessment Map (SEAM) framework, developed by experts in the defence and security fields, leaders can examine the ways in which their organisations must adapt to changing situations and connect with other entities to improve future responses to crises. 

George Alders, of PwC’s Global Government Security Sector, says:

“The world of police work and the crimes they must tackle is changing and evolving as technology drives new types of crimes and societal behaviours. Amid this transformation, during the COVID-19 pandemic, police are being asked to do even more – enforcing social distancing, restrictions on movement between countries, even the wearing of face masks. In order to meet the challenges of a pandemic and whatever the next new threats may require, police and security services will need to develop more collaborative ways of working to keep citizens safe.”

Terry Weber, of PwC’s Global Government Defence Sector, says:

“The response to the COVID-19 pandemic was uncharted territory in many respects and was the ultimate test of trusted institutions to be agile and flexible in the face of immense pressure. Applying a structured approach to evaluating where these institutions succeeded and where they fell short will help all players in the ecosystem continue to respond appropriately to the ongoing crisis and prepare for the next threat, whatever it may be.”

Malcolm Brown, Senior Strategic Advisor, PwC Canada, says:

“This pandemic is far from over. Governments will be challenged to meet the needs of citizens as economies re-open, employees return to work, international travel resumes, and health and social care systems reassess their capacities in the face of fluctuating COVID-19 infection rates.The mapping process we’ve developed for identifying what is working well and what is not can help leaders make the right decisions and investments to keep their citizens safe now and be better prepared for the next phase of the pandemic or the next crisis that awaits us.”

Continue Reading

Reports

Summer 2020 Economic Forecast: An even deeper recession with wider divergences

Newsroom

Published

on

The EU economy will experience a deep recession this year due to the coronavirus pandemic, despite the swift and comprehensive policy response at both EU and national levels. Because the lifting of lockdown measures is proceeding at a more gradual pace than assumed in our Spring Forecast, the impact on economic activity in 2020 will be more significant than anticipated.

The Summer 2020 Economic Forecast projects that the euro area economy will contract by 8.7% in 2020 and grow by 6.1% in 2021. The EU economy is forecast to contract by 8.3% in 2020 and grow by 5.8% in 2021. The contraction in 2020 is, therefore, projected to be significantly greater than the 7.7% projected for the euro area and 7.4% for the EU as a whole in the Spring Forecast. Growth in 2021 will also be slightly less robust than projected in the spring.

Valdis Dombrovskis, Executive Vice-President for an Economy that works for People, said: “The economic impact of the lockdown is more severe than we initially expected. We continue to navigate in stormy waters and face many risks, including another major wave of infections. If anything, this forecast is a powerful illustration of why we need a deal on our ambitious recovery package, NextGenerationEU, to help the economy. Looking forward to this year and next, we can expect a rebound but we will need to be vigilant about the differing pace of the recovery. We need to continue protecting workers and companies and coordinate our policies closely at EU level to ensure we emerge stronger and united.”

Paolo Gentiloni, Commissioner for the Economy, said: “Coronavirus has now claimed the lives of more than half a million people worldwide, a number still rising by the day – in some parts of the world at an alarming rate. And this forecast shows the devastating economic effects of that pandemic. The policy response across Europe has helped to cushion the blow for our citizens, yet this remains a story of increasing divergence, inequality and insecurity. This is why it is so important to reach a swift agreement on the recovery plan proposed by the Commission – to inject both new confidence and new financing into our economies at this critical time.”

Recovery expected to gain traction in second half of 2020

The impact of the pandemic on economic activity was already considerable in the first quarter of 2020, even though most Member States only began introducing lockdown measures in mid-March. With a far longer period of disruption and lockdown taking place in the second quarter of 2020, economic output is expected to have contracted significantly more than in the first quarter.

However, early data for May and June suggest that the worst may have passed. The recovery is expected to gain traction in the second half of the year, albeit remaining incomplete and uneven across Member States.

The shock to the EU economy is symmetric in that the pandemic has hit all Member States. However, both the drop in output in 2020 and the strength of the rebound in 2021 are set to differ markedly. The differences in the scale of the impact of the pandemic and the strength of recoveries across Member States are now forecast to be still more pronounced than expected in the Spring Forecast.

An unchanged outlook for inflation

The overall outlook for inflation has changed little since the Spring Forecast, although there have been significant changes to the underlying forces driving prices.

While oil and food prices have risen more than expected, their effect is expected to be balanced by the weaker economic outlook and the effect of VAT reductions and other measures taken in some Member States.

Inflation in the euro area, as measured by the Harmonised Index of Consumer Prices (HICP), is now forecast at 0.3% in 2020 and 1.1% in 2021. For the EU, inflation is forecast at 0.6% in 2020 and 1.3% in 2021.

Exceptionally high risks

The risks to the forecast are exceptionally high and mainly to the downside.

The scale and duration of the pandemic, and of possibly necessary future lockdown measures, remain essentially unknown. The forecast assumes that lockdown measures will continue to ease and there will not be a ‘second wave’ of infections. There are considerable risks that the labour market could suffer more long-term scars than expected and that liquidity difficulties could turn into solvency problems for many companies. There are risks to the stability of financial markets and a danger that Member States may fail to sufficiently coordinate national policy responses. A failure to secure an agreement on the future trading relationship between the UK and the EU could also result in lower growth, particularly for the UK. More broadly, protectionist policies and an excessive turning away from global production chains could also negatively affect trade and the global economy.

There are also upside risks, such as an early availability of a vaccine against the coronavirus.

The Commission’s proposal for a recovery plan, centred on a new instrument, NextGenerationEU, is not factored into this forecast since it has yet to be agreed. An agreement on the Commission’s proposal is therefore also considered an upside risk.

More generally, a swifter-than-expected rebound cannot be excluded, particularly if the epidemiological situation allows a faster lifting of remaining restrictions than assumed.

For the UK, a purely technical assumption

Given that the future relations between the EU and the UK are not yet clear, projections for 2021 are based on a purely technical assumption of status quo in terms of their trading relations. This is for forecasting purposes only and reflects no anticipation nor prediction as regards the outcome of the negotiations between the EU and the UK on their future relationship.

Background

This forecast is based on a set of technical assumptions concerning exchange rates, interest rates and commodity prices with a cut-off date of 26 June. For all other incoming data, including assumptions about government policies, this forecast takes into consideration information up until and including 30 June. Unless policies are credibly announced and specified in adequate detail, the projections assume no policy changes.

The European Commission publishes two comprehensive forecasts (spring and autumn) and two interim forecasts (winter and summer) each year. The interim forecasts cover annual and quarterly GDP and inflation for the current and following year for all Member States, as well as EU and euro area aggregates.

The European Commission’s next economic forecast will be the Autumn 2020 Economic Forecast which is scheduled to be published in November 2020.

Continue Reading

Publications

Latest

Economy6 mins ago

Dynamics of Current Global Economic Crisis

Global economic architecture is fundamentally weak and fragile and having multiple internal contradictions which emanate in different economic and financial...

Human Rights1 hour ago

World Population Day: ‘No time to waste’ in empowering women

“It is deepening existing inequalities and vulnerabilities, particularly for women and girls”, said Secretary-General António Guterres.  “With many countries on...

Environment3 hours ago

Rising global temperature shows ‘enormous challenge’ of meeting climate goal

Annual global temperature is likely to be at least 1°C warmer than pre-industrial levels in each of the coming five...

Reports5 hours ago

U.S: Extending support and lowering regulatory barriers could energize the recovery from Covid-19

Swift action by the U.S. government has helped shield households and businesses from the immediate economic shock of the Covid-19...

Southeast Asia6 hours ago

Can Cam Ranh Bay-Port Blair-Djibouti form a strategic Maritime chain hub to tackle China?

The world at present is grappling with the Global Pandemic Coronavirus, but Chinese maritime security aggressiveness in the East China...

EU Politics7 hours ago

New EU rules and guidance for a fairer online economy

The Commission publishes today a set of resources to help traders, online platforms and search engines get the most out...

Europe8 hours ago

Enlarge views – Europe is en/large enough

The first July day of 2020 in Vienna sow marking the anniversary of Nuremberg Trials with the conference “From the...

Trending