How does the National Manufacturing Mission address supply chain risks in India's clean energy transition?
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Synopsis
The National Manufacturing Mission (NMM) is set to transform India's clean energy landscape by minimizing supply chain risks and boosting domestic manufacturing. This report highlights the mission's potential to enhance economic growth and reduce import dependency in critical sectors. Discover how this initiative can shape the future of India's energy transition.
Key Takeaways
- NMM is critical for reducing supply chain risks.
- It aims to decrease reliance on imports for clean energy components.
- Focus on MSMEs and startups is essential for innovation.
- Successful execution can lead to significant job creation.
- Positioning India as a global leader in clean technology is a key goal.
New Delhi, Oct 6 (NationPress) The National Manufacturing Mission (NMM) is crucial in reducing supply chain vulnerabilities and seizing economic prospects within India's transition to clean energy, as highlighted in a report released on Monday.
The power, industry, and transportation sectors, responsible for nearly 90 percent of India's CO2 emissions, are at the heart of the nation's decarbonization efforts.
While there is robust policy backing for renewable energy, Green Hydrogen, and electric vehicles, the report raises a significant issue: India's heavy reliance on imports, which varies from 20 percent to 90 percent for essential components such as solar PV modules, battery storage, and advanced wind turbine parts, as noted by credit rating agency ICRA.
The report warns that maintaining this import reliance while aiming to achieve 2030 goals could result in nearly 70 percent of the capital investment in these sectors being diverted to global manufacturing centers.
Launched to enhance domestic clean technology production, the NMM is recognized as a vital initiative to tackle this issue. Its alignment with India’s nationally determined contributions (NDC) and emphasis on involving MSMEs and startups are considered fundamental to its approach.
Progress is already visible, with the Union Budget 2025-26 designating 10 percent of the mission's overall funding and over 500 MSMEs and startups onboarded by August this year, according to the report.
ICRA highlighted the importance of the mission's successful execution, which could yield three major benefits: significantly reducing import dependence, boosting employment within the cleantech sector, and establishing India as a prominent exporter of clean technology solutions.
The report stressed that effective implementation is essential to harnessing domestic advantages, thereby both securing the local supply chain and positioning India competitively in the global cleantech arena.
Point of View
It is essential to highlight the significance of the National Manufacturing Mission in fortifying India's clean energy transition. By addressing supply chain vulnerabilities and promoting domestic production, the mission offers a dual benefit of economic opportunity and environmental responsibility, aligning with national interests and global sustainability goals.
NationPress
06/10/2025
Frequently Asked Questions
What is the National Manufacturing Mission?
The National Manufacturing Mission (NMM) aims to promote domestic manufacturing in clean technologies, reducing supply chain vulnerabilities and enhancing economic growth.
Why is import dependency a concern for India?
India's reliance on imports for critical components in clean energy sectors can hinder local growth and divert significant capital investment to global manufacturing hubs.
How does the NMM support MSMEs and startups?
The NMM focuses on onboarding MSMEs and startups, providing them with opportunities to participate in the clean technology sector, thus driving innovation and job creation.
What are the key outcomes expected from the NMM?
The NMM is expected to reduce import dependency, create employment opportunities in the cleantech sector, and position India as a leading exporter of clean technology solutions.
What role does the government play in the NMM?
The government's policy support and budget allocation are crucial for the successful implementation of the NMM, which aims to achieve India's clean energy goals.
