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India is poised to play a critical role in supporting the United States renewable energy sector, leveraging its manufacturing strengths, cost advantages, and skilled workforce, according to a report by ValueQuest Investment.
India Positioned as a Reliable Partner
The report highlights India’s large-scale manufacturing base, competitive production costs, and robust STEM talent pool as key factors that make it an attractive partner for the US. India’s ability to offer reliable supply chains further strengthens its position in the renewable energy landscape.
“India’s scale, talent, and cost-efficiency provide a compelling case for it to become the US’s preferred partner, especially as the US looks to reduce reliance on Chinese supply chains,” the report noted.
Policy and Geopolitics Driving Collaboration
The Inflation Reduction Act (IRA) has laid a strong foundation for renewable energy growth in the US, with solar capacity surging to 178 GW in 2023 from just 15 GW in 2013. The report underlined the durability of the IRA, emphasizing that making significant changes to the legislation would require congressional approval, ensuring stability in renewable energy policy.
India’s established trade relationships across industries such as software and pharmaceuticals could facilitate seamless collaboration in renewable energy. The report also pointed out that anti-China sentiment in the current geopolitical climate creates a significant opportunity for India to strengthen its role as a strategic partner for the US.
Indian Companies Expanding Their Presence in the US
Several Indian companies are already investing in manufacturing facilities within the US, taking advantage of tax credits and mitigating supply chain risks. This proactive approach positions them to support the US’s clean energy goals while boosting India’s renewable energy exports.
A Promising Outlook for Renewables
India’s strategic advantages, combined with robust US policy support, could enable both nations to achieve their energy transition goals. The partnership has the potential to drive decarbonization, accelerate clean energy adoption, and promote global sustainable development. |
