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Global Power Dynamics

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India’s aspiration to become a global power is a compelling journey marked by both significant challenges and substantial opportunities. As one of the fastest-growing economies in the world, India faces unique constraints that limit its global influence, but it also holds key foundations that provide a strong foundation for global leadership.

Key Constraints Hindering India’s Global Power Aspirations

  1. Ambition vs. Strategic Capacity:

    • Strategic Clarity and Institutional Capacity: While India has ambitious goals, critics argue that it lacks the strategic clarity and institutional mechanisms to translate this ambition into sustained global influence. For instance, its military expenditure is far behind China and the US, which weakens its power projection capabilities. India’s military expenditure for 2024 was USD 86 billion, significantly less than China's USD 314 billion.

    • Dependency on Arms Imports: India is one of the largest arms importers globally (9.5% of the global arms imports between 2016-2020), which reflects its underdeveloped indigenous defense capabilities and reliance on external suppliers.

  2. Strategic Ambiguity in Global Alliances:

    • India’s strategic autonomy has helped it avoid being overly aligned with any one global power, notably balancing its relations with the Quad, Russia, and China. However, critics argue that this “non-aligned” approach could hinder India’s reliability as a partner in times of crisis. India’s cautious stance on the Russia-Ukraine conflict has sometimes been seen as undermining its standing in Western capitals.

  3. Human Development Constraints:

    • Human Development Index (HDI): India ranks 130th out of 193 countries on the HDI in 2023, highlighting significant deficits in areas like health, education, and income distribution. The Inequality-Adjusted HDI (IHDI) is even lower, revealing persistent social and regional inequalities that hinder holistic national development.

    • Poverty and Inequality: With widespread inequality, India struggles to build a cohesive society. Inequality in wealth and opportunity undermines India’s global image as a rising power and limits its soft power potential.

  4. Economic Power vs. Per Capita Strength:

    • India is the 4th largest economy by nominal GDP, but its per capita GDP remains low at USD 2,711, placing it among lower middle-income nations. This makes it less influential in economic diplomacy and limits its ability to project soft power on a global scale. India’s rank of 144th in per capita GDP reflects a stark contrast to the economic might of the US or China.

  5. Technological Gaps and Innovation Challenges:

    • India lags behind in cutting-edge technologies. For example, it ranks 39th on the Global Innovation Index, far behind China (11th) and the US (3rd). While India has made strides in digital technology (e.g., UPI and Aadhaar), challenges remain in sectors like semiconductors, quantum computing, and biotechnology.

  6. Internal Social Fault Lines:

    • Press Freedom: India ranks 159th out of 180 in the World Press Freedom Index, which impacts its democratic credibility. Moreover, vast development gaps between states like Goa (HDI ~0.75) and Uttar Pradesh (~0.60) highlight significant regional inequalities, further hindering national cohesion and the ability to project a unified front globally.

Key Foundations Supporting India’s Aspiration to Become a Global Power

  1. Economic Growth and Demographic Advantage:

    • India’s economy is poised for growth at a rate of 6-7% per year, making it a major economic power in the coming decades. By 2030, India is expected to be the third-largest economy globally.

    • India’s young population (median age of 28.2 years) provides a substantial labor force, boosting innovation, industrial growth, and consumption, making it an attractive market and driving global influence.

  2. Geopolitical Significance:

    • Strategically located at the crossroads of Asia, India controls vital maritime chokepoints in the Indian Ocean, essential for global trade and security.

    • India’s participation in forums like the Quad, SCO, and BRICS enhances its geopolitical leverage, especially in the Indo-Pacific, shaping the future of regional security and global governance.

  3. Technological and Defence Strength:

    • Digital Leadership: India has become a digital powerhouse, leading in mobile payment systems like UPI and having over 100 unicorns in tech startups. Additionally, its space missions (e.g., Chandrayaan 3 and Mangalyaan) and growing defense capabilities (e.g., Tejas aircraft and INS Arihant submarine) reinforce its technological and military potential.

    • India’s military personnel ranks second globally, and its defense strength is growing, underscoring its military significance in Asia.

  4. Strategic Autonomy and Soft Power:

    • India’s strategic autonomy allows it to navigate great power rivalries and engage in diverse multilateral forums. India is increasingly seen as a leader in the Global South and a counterbalance to China's rise in Asia.

    • India's soft power—exemplified by its vibrant diaspora, Bollywood, yoga, and global influence on climate change—is central to its growing global profile. With over 30 million people in the diaspora, India has an established network in key economies that amplifies its diplomatic efforts.

How Should India Navigate Evolving Global Power Dynamics?

  1. Strengthen Domestic Foundations for Global Reach:

    • India must focus on health, education, skilling, and infrastructure to convert its demographic advantage into economic growth. Institutional reforms in governance, the judiciary, and policing are also critical to building rule-based development.

  2. Strategic Communication of India’s Vision:

    • India should clearly articulate its unique path of democracy with diversity, inclusive growth, and sustainable development. By proactively promoting its civilisational story, India can counter Western misperceptions and showcase its distinctive model of governance.

  3. Balanced Partnerships with Competing Powers:

    • India should continue balancing assertiveness with pragmatism. Strengthening ties with the US while engaging constructively with China and Russia will enhance India’s leverage in global forums. India should focus on issue-based coalitions rather than bloc politics, positioning itself as an important but independent voice in a multipolar world.

  4. Leverage Soft Power and Technological Leadership:

    • India should invest further in tech diplomacy, particularly in areas like Data Governance, AI ethics, and digital public goods. By promoting its leadership in global regulatory frameworks (tech, environment, global health), India can shape global norms and enhance its soft power.

Conclusion: India’s Path to Global Power

India’s trajectory from food scarcity to food security, from Non-Alignment to strategic engagement with great powers, and from industrial laggard to digital innovator is a remarkable story of resilience and evolution. While there are constraints—such as strategic ambiguity, military and technological gaps, and domestic inequalities—India’s foundations in economic growth, geopolitical significance, and technological and defense strength position it as an emerging global power. By focusing on domestic reforms, strategic partnerships, and soft power, India can become not just a follower of global trends but a shaper of the future world order

India Electric Mobility Index

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The NITI Aayog report “Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles (EVs) in India” and the launch of the India Electric Mobility Index (IEMI) highlight both the potential and the challenges facing the country in transitioning to electric mobility. As India moves forward, addressing these challenges will be key to unlocking the growth and environmental benefits of EV adoption.

India Electric Mobility Index (IEMI)

The IEMI is the first-ever tool to track and benchmark India's progress in e-mobility at the state level. Launched in partnership with the World Resources Institute India, it evaluates the readiness and progress of states in the transition to electric vehicles. The index tracks 16 performance indicators across three categories:

  1. Transport Electrification Progress – Measuring the adoption of electric vehicles on the demand side.

  2. Charging Infrastructure Readiness – Assessing the development of a charging network.

  3. EV Research & Innovation – Evaluating the supply-side R&D efforts.

The states are categorized into four levels:

  • Achievers (100 points)

  • Front Runners (65–99 points)

  • Performers (50–64 points)

  • Aspirants (0–49 points)

For 2024, Delhi emerged as the leader with a score of 77, followed by Maharashtra (68), Chandigarh, and Karnataka.

Electric Vehicle (EV) Overview

Types of Electric Vehicles (EVs):

  • Battery Electric Vehicles (BEVs) – Fully electric vehicles powered by rechargeable batteries.

  • Hybrid Electric Vehicles (HEVs) – Combine an electric motor and an internal combustion engine (ICE).

  • Fuel Cell Electric Vehicles (FCEVs) – Use fuel cell technology to generate electricity for propulsion.

  • Plug-in Hybrid Electric Vehicles (PHEVs) – Have both an engine and a rechargeable battery.

Status of EVs in India:

  • India witnessed a significant increase in EV sales, reaching 2.08 million units in 2024, a sharp rise from 50,000 in 2016.

  • However, EV penetration remains at 7.6% in 2024, far from the target of 30% by 2030.

Key Challenges Highlighted in the Report

  1. Financing Challenges (for e-Buses & e-Trucks):

    • High capital cost: Electric buses and trucks are 2–3 times more expensive than their internal combustion engine counterparts.

    • Financial institutions are skeptical about the repayment capacity of smaller operators.

  2. Vehicle-Centric Challenges:

    • EV batteries are heavy and costly, reducing truck load capacity.

    • The 15-year scrappage rule decreases the resale value of EVs.

  3. Charging Infrastructure Challenges:

    • Public charging costs four times more than home charging due to GST (18%) and operator margins.

    • Issues with obtaining upstream power supply connections from DISCOMs.

    • Land constraints in cities and highways hinder the establishment of charging stations.

    • Resident Welfare Associations (RWAs) have concerns about safety regarding charging stations.

    • Lack of a unified app for locating, booking, and paying for charging stations.

  4. Awareness and Perception Challenges:

    • Confusion over incentives offered by different states.

    • Misconceptions related to fire safety, battery degradation, range anxiety, and resale value.

    • Weak and fragmented awareness campaigns.

  5. Inadequate Data and Regulatory Gaps:

    • Inaccurate data on EV categories in the VAHAN database.

    • Lack of unique battery IDs, making it difficult to track and recycle batteries.

    • The Inverted GST structure on EVs (input GST at 18% and output GST at 5%) is problematic for manufacturers.

Steps Taken by India to Boost EV Adoption

  1. PM E-DRIVE Scheme:

    • Supports electric two-wheelers, three-wheelers, e-trucks, e-buses, and charging infrastructure.

    • Provides demand-side incentives to consumers.

  2. EV Manufacturing Promotion:

    • The Scheme to Promote Manufacturing of Electric Passenger Cars aims to attract global EV manufacturers and make India a key EV manufacturing hub.

  3. PM e-Bus Sewa Scheme:

    • Aims for the deployment of 38,000+ e-buses, ensuring payment security for operators.

  4. PLI Scheme for Automotive & Auto Components:

    • To boost domestic production of EV-related technologies and components.

  5. PLI – Advanced Chemistry Cells:

    • Aims to produce 50 GWh of domestic battery capacity, reducing dependence on imports.

  6. GST Reduction:

    • GST on EVs reduced from 12% to 5%.

  7. EVolutionS Program:

    • Launched by Department of Science & Technology (DST) to support EV startups.

Way Forward

  1. Moving from Incentives to Mandates:

    • Set production targets for Zero Emission Vehicles (ZEVs) and impose higher registration fees/taxes on ICE vehicles to create demand for EVs.

  2. Saturation Approach:

    • Target 100% EV adoption in 5 key cities within 5 years, supported by infrastructure and fleet electrification mandates.

  3. Financing e-Buses and e-Trucks:

    • Create a pooled fund for low-interest loans to support the procurement of electric buses and trucks.

  4. Battery Research:

    • Promote industry-academia-government partnerships for R&D on next-gen EV batteries.

  5. Strategic Charging Infrastructure:

    • Develop 20 key corridors and establish nodal agencies for mapping and setting up charging hubs.

  6. Unified National EV App:

    • Develop a centralized app for locating charging stations, booking slots, payments, and explore dedicated EV power lines.

  7. Lowering Upfront Costs:

    • Encourage leasing models for buses and trucks and battery-as-a-service (BaaS) to reduce capital costs for small operators.

  8. Awareness and Information:

    • Launch a national EV awareness program, assess stakeholder data needs, and create a robust information system to guide decisions.

Best Practices for EV Adoption

  • China: The “10 Cities, 1000 Vehicles” program, where each city deployed at least 1,000 NEVs in public fleets, is a notable example.

  • Singapore: Established EVElectric Charging to coordinate charging station deployment, working with relevant agencies.

  • Europe: The ChargeMap app provides real-time data and user reviews of charging stations.

  • UK: The Faraday Battery Challenge created the UK Battery Industrialisation Centre to scale lab prototypes to production.

Conclusion

India is on the verge of unlocking a significant 200 billion dollar opportunity in the EV sector, but the path forward requires addressing several structural and market challenges. The India Electric Mobility Index (IEMI) will play a crucial role in tracking progress and identifying gaps. By focusing on enhancing charging infrastructure, improving awareness, and addressing financial and regulatory issues, India can accelerate its transition to electric mobility, making it a global leader in the sector. Through sustained government support, strategic partnerships, and innovation, India has the potential to become a powerhouse in the EV space.


 


 

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