How can India become "economically independent"?!! how the era of electric vehicles can affect the Indian national treasury???

crude oil
Image credit: moneycontrol

India, the fastest growing country on the globe also needs an ample amount of fuel every day in order to meet its daily needs as well to support the new development works.

The amount of consumption of fuel by a country measures its rapidness in growing from each and every perspective.

Fuel is necessary and that too in a continuous flow to keep the wheels of the train of development of India in motion. If a bit change in the prices takes place, then its effect is seen everywhere.

It creates price hikes in every product needed daily like milk, grocery, etc. The market in a way invites the crises, so the government is also very conscious regarding the sensitivity of petroleum prices.

Simply one's move harms many. And during the international trade wars and tensions between some countries, India suffers the most as its market is most sensitive.

Also, India has to spend a bulk amount to buy it from other countries like Iran. India's daily import of crude oil is 4,930,000 barrels/day which makes it the third largest importer in the world after China & USA.

crude oil imports
Image credit: ExportGenius

The expenditure on importing crude oil has also been rising in the last several years which obviously has increased the amount of money spend in importing.

India may have many crude oilfields but they are not at all capable to meet the daily needs, so lastly they are exported to small countries.

India crude oil imports us exports
Image credit: The Oil Drum

And we would be definitely surprised that we are paying an almost double price per litre at the Indian petrol pumps.

In the final digit of the petrol's price includes a percentage share of several taxes & duties imposed on it and makes the final retail amount almost double than that the amount which costed the government.

So, therefore crude oil is a thing on which the government has to spend a lot and in return, it's also a big source of revenue for the government.

Overall, it's a kind of business in which the government earns for the country. But nothing is constant, the change can't be stopped.

Electric vehicles and their new era have enlightened a new torch of hope in the minds of people worldwide that they too can make a change to control pollution without compromising their amenities.

electric vehicle
Image credit: inc42

Meanwhile, the era of electric vehicles is in its primitive stage and the research & development works are in the pipeline and the best can be expected in the nearest future.

But... this will block the business channel of the massive source of income of the government, as for now, India is dependent on foreign countries for crude oil and so is with the Indians.

But the demands of crude oil will fall thunderously as the electric era will take off with flying colours in India as the electricity can be produced through end number of ways within the country.

crude oil falling prices
Image credit: Bizongo

So people will no more dependent on the existing petrol pumps and will hunt for charging stations or will fuel up [charge] their vehicles within their parking.

The taxes & duties of petroleum products will just stop flowing in the national treasury and the situation could invite economic crisis too.

This seems a very very terrible situation from one side but it's going to give relief the burden on country & its treasury by the other side.

strong rupee
Image credit: Musafir

The fall in demands will, in turn, lead to the decrement in the imports of petroleum products and will, in fact, invite economic crisis in the countries which have the petroleum-exports as their prime income source.

This will make India "economically independent" as it will have no longer need to lie before those countries.

There will definitely an increase in the demand for electricity which can be not met with the present sources.

So the money which would be prevented by flowing outside the country will be used in fulfilling the electricity demands but this time it should be invested in generating electricity from the renewable sources.

Soon instead of new thermal plants, nuclear plants, etc the solar power plants, tidal energy, hydroelectric power plants, etc should come up which will fulfil the real motto behind the usage of electric vehicles which was to control the pollution.

If the demands are met and still more resources in the treasury are left than the old days, then they could be invested in other fields like education, public welfare, health and other economic reforms.

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