Greater manufacturing capacity and efficiencies hold the key to India’s growth and success in becoming the global leader. And recent initiatives by Government testify the country’s intent on claiming the mantle of the fastest growing manufacturing hub in the world. However, prioritizing the fastest growing manufacturing sector within the country (which is solar sector) and focusing on its growth (through domestic manufacturing) can help India reach great heights.

Present Status of Manufacturing Sector in India

Indian manufacturing sector has shown incredible growth in recent years. In the last 4-5 years India has executed nearly half of the 37 reforms, that were adopted in 2003. From facilitating the delays in getting construction permits, simplifying finance acquisition, registration of property, paying taxes, protecting minority investors, developing skill through training, resolving insolvency, and enforcing contracts; Government of India has acted aggressively on these issues, making the country a lucrative platform for manufacturing.

Recent Government initiatives have enhanced India’s manufacturing sector 7.32% at a CAGR of between FY12 and FY17. And in FY 16-17 the sector showcased an incredible growth rate of 7.7% over the previous financial year. The manufacturing goods highlighted 2.4% growth in wholesale price index between April 2016 and January 2017. Besides refinery products, steel, fertilizer, and cement, electricity generation also grew in India, and in FY 17-18, India is estimated to generate surplus of power for the first time in at least 13 years. Thermal energy capacity showed 60 GW growth and renewable energy capacity added 23 GW.

Foreign Investment Can Speed Up Growth

Government support and initiatives have also made way for foreign investments to reach the country. A total of 67% increase in FDI inflow into India has been witnessed in the last 3 years and near about $9.64 billion FDI inflow in August 2017 alone. This has great implications of making India more suitable to establish and enhance businesses has huge implications on the socio-economic growth of the country. It will create more jobs, improve industrial structure, improve R&D structure, and ultimately support domestic manufacturing, allowing India to reduce forex outflow and making the country a leader in the global trading arcade.

Although, Government initiatives and foreign investment present opportunities for India to scale great heights through manufacturing, there are challenges like-

  • Lack of policy framework and delays in policy implementation
  • Lack of demand creation
  • Lack of investment in R&D
  • Reducing rate of subsidies

Focusing on solving these problems and improving creating an environment for better technology usage and innovation can help India in becoming the manufacturing hub it aspires to become.

Emerging Trends

Recently released The World Bank’s survey report on ‘Doing business 2018’ has positioned India in the 100th position among top countries that have favourable environment for business. The current position is 32 places up from India’s last recorded position. It clearly endorses the economic reformation within the country and eagerness to become a knowledge based, technology driven economy.

Make in India program, launched by the Hon’ble Prime Minister of India, Mr. Narendra Modi has made quite an impact in improving the manufacturing scenario within India. Most notably, the solar sector has flourished and has become the perfect example of Indian manufacturing growth. Policy initiatives, supply side reforms, green corridors program, mandate enforcements, and solar parks policy favoured towards Indian solar energy sector saw huge growth in manufacturing (8400 MW) and installed solar (14 GW) capacities in India.

And the current overall manufacturing growth rate of India is estimated to make India the fifth largest manufacturing country in the world by the end of 2020.

More Focus Will Yield Faster and Better Results

Government initiatives like- protecting MSMEs, opening up the economy to foreign budget (received US$ 70.51 billion FDI by June 2017), establishing Centres of Excellence (CoE) and R&D facilities for innovation, strategic partnerships with foreign companies to reduce learning curve, and offering subsidies to encourage growth have boosted the manufacturing sector in India. And as global consumption level is growing with population, this is the right moment for the country to focus more on manufacturing and claim the global export market, just like China, US have.

Dominant solar countries like- China and the US have aggressively expanded their domestic manufacturing capacity, which has helped them to control (lower) the price of manufactured products while improving quality. This simple equation has led China and the US to claim large portions of the global market through exports, and made them leaders in the global market. Manufacturing success of these countries is powered by a synchronized growth in skill development, financial investment and infrastructure quality improvement (R&D). This simple yet effective equation has helped them to control the global market and increase profits through exports.

Road Ahead

Boost in manufacturing sector in India can help the country reach that position, but the focus has to be continuous and unwavering. Especially towards the most lucrative and in-demand sectors such as- solar energy sector. Domestic manufacturing of Indian solar sector is able to offer energy security, position in the export market, and stands to save India huge amounts of money ($42 bn by 2030 from solar imports), kicking back the profits towards socio-economic growth. So, priorities have to be set and more focus on ‘top of the list’ sectors is needed to help India rank with the top three growth economies and manufacturing destination of the world by the year 2020.

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Kigbe is a suburb located in the Kwali local government in the Federal Capital Territory of Nigeria. It is situated 27km from the existing grid infrastructure. Prior to this project being commissioned, the residents of Kigbe did not have access to electricity and depended on candles, kerosene lanterns, and very few generators for their lighting.

This caused poor living standards for the inhabitants and made it virtually impossible to sustain businesses in the community.

Schneider Electric and Havenhill Synergy collaborated to build a mini-grid in Kigbe providing continuous access to electricity, using a cutting-edge model of community level electrification with decentralized power generation.

Read our full case study to learn more about this project, and why the Conext XW+ hybrid inverter was chosen for this project.

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The role of renewable energy as an enabler of island resilience and prosperity takes centre-stage at IRENA’s Small Island Developing States Energy Day

Small and strong was the theme for IRENA’s Small Island Developing States (SIDS) Energy Day, held during COP23 in Bonn, Germany. The day-long series of events held at the IRENA pavilion, followed by a high-level evening reception at the Kunst Museum were designed to mark progress, galvanise collective resolve and inspire further action on climate resilience and adaptation through renewable energy adoption across small islands.

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Here is what happened:

Presidents, Prime Ministers, Ministers and senior government and private sector representatives came together for SIDS Energy Day to remind the world that the climate threat is no longer on the horizon – for the people and communities who reside on small islands, the threat is becoming a reality.

“SIDS are on the front-lines of climate change, facing the most impact from its effects while doing the least to cause it,” said Adnan Z. Amin, Director General of IRENA in opening remarks. “The recent destructive hurricanes in the Caribbean are a reminder of this, and I want to extend my deepest sympathy to our friends there who are dealing with the aftermath of the storms.”

These opening remarks set the scene for a day that sought to hasten actionable solutions for nations already suffering at the hands of severe weather patterns.

One such important solution is the development of mini-grid and off-grid renewable energy installations, which can offer small islands a sustainable pathway to economic empowerment, as well as to climate adaptation and resilience. “In the energy sector, SIDS are hindered by a high dependence on imported fossil fuels, and the associated high costs in transitioning to sustainable energy and low carbon development,” continued Mr. Amin.

DG SIDS

IRENA’s Lighthouses Initiative aims to support the energy transition in SIDS by mobilizing US 500 million, to advance their renewable energy ambitions. It’s working. Today, islands are emerging as front runners in the pursuit of renewables based energy systems with more than two gigawatts (GW) of renewables is currently deployed on islands and a further six GW envisaged under nationally determined contributions (NDCs).

Furthermore, several islands plan to go 100 per cent renewables. The Cook Islands, Cape Verde, Fiji, Saint Vincent and the Grenadines, Vanuatu and Samoa were all noted as aiming to increase their share of renewable energy in the power mix to between 60 – 100 per cent.

island pic with solar panel

Renewables make smart business sense for small islands said new Environment Minister for the Marshall Islands the Honorable David Paul during a SIDS Energy Day panel discussion – highlighting that energy security is strengthened through renewable energy adoption, because it liberates them from fuel imports and protects them from the impact of conflict.

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During the day, panels on transforming the energy landscape in SIDS, strengthening resilience to climate change and facilitating implementation of NDCs, and supporting SIDS energy sector transformation, took place at the IRENA stand, with attendance from leaders such as H.E. Hilda Heine, President of the Marshall Islands and H.E. Tommy Remengesau Junior, President of Palau.

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But it was the message of small but strong – delivered by Minister of Sustainable Develop in St Lucia, Dr Gale Rigobert – that captured the moment and inspired participants.

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What islands are experiencing today, is coming to all of us concluded Adnan Amin. At SIDS Energy Day during COP23, this message was loud and clear.

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Taking place in Mumbai, December 5-7, Intersolar is India’s premier solar tradeshow and the place to be in this very exciting time for solar and renewables across India. For Enphase, this year’s Intersolar marks a significant milestone. 

Over the past 12 months, we have established our presence by signing with distribution partners and AC module manufacturers Redington, Sun-AP and Waaree. From 2018, Enphase technology will be used in residential and commercial applications across the entire subcontinent, bringing with it the intelligence, reliability and remote control capabilities that Enphase is known for.

Our "Made for India" catchcry describes our message to the Indian solar market. If solar is to provide a long term return in India's harsh and dusty conditions, reliable networked hardware, powerful software and a resilient AC architecture will prove to be essential to solar's success. To learn the ways in which Enphase is perfectly suited for the local market, installers and developers can learn more on the booths of Redington and Waree and join Enphase Strategic Account Manager, Venkata Mukundarajan as he delivers a presentation in the conference session, Residential Rooftop Systems – Design and Quality Go Hand in Hand. Alongside Venkata, our team in attendance at Intersolar will include Sunil Thamaran, VP Managing Director General & Administration, Nathan Dunn, Managing Director Enphase APAC, and Josh McLaren, Sales Operations Enphase APAC. Those attending Intersolar India, come and meet the Enphase team and hear about our exciting plans for the year ahead!

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