Amardeep Singh Bhatia is an IAS Officer who has held many key positions in the central Government, especially in the Ministries of Corporate Affairs and Health & Family Welfare before taking up the current assignment. I met him at his office at Vanijya Bhavan for this interview. I asked him five specific questions and he was not only kind enough to indulge me with detailed responses but also to send me the relevant references as well.
1. There are certain critical components MSME and other manufacturers import from China such as lithium-ion batteries, machinery, various raw materials etc. What could be the Government of India’s vision to contain these imports and motivate the local suppliers to take over at least in most areas where we could meet the demand?
i. The Government has taken a holistic approach to stimulate both demand and supply to build India’s industrial base.
ii. To encourage investments, Foreign Direct Investment (FDI) is freely permitted in almost all sectors.
iii. Steps have been taken to also permit FDI through the automatic route in sectors which require significant investments. For example, FDI in renewable energy sector is permitted up to 100% under the automatic route.
iv. The Production Linked Incentive (PLI) scheme with outlay of Rs. 1.97 lakh crore is fostering self-reliance, aimed at boosting domestic manufacturing and reducing dependence on imports, in key sectors such as high efficiency solar PV modules, and Advanced Chemistry Cell (ACC) battery.
v. Beyond promoting investments, the Government is also building domestic capacity through measures such as Quality Control Orders (QCOs) to reduce import of substandard products.
vi. In the toy sectors, by restricting imports of sub-standard and unsafe toys, promoting indigenous toy clusters, organizing hackathons and grand challenges for toy designing and manufacturing, there has been a 52% decrease in overall import of toys and 239% increase in exports of toys from FY 2014-15 to FY 2022-23.
vii. From a limited market with substandard products, the toy industry is now seeing significant demand in domestic and international markets for high quality products.
viii. Such consumer demand is now being built in the Electric Vehicle and solar energy segments as well. For example, the PM Surya Ghar Muft Bijlee Yojana aims to provide free electricity to one crore households in India, who opt to install roof top solar electricity units. This will significantly boost domestic demand for solar cells which can then be taken up by players who have benefitted from schemes like PLI.
ix. The Government is providing support specifically to MSMEs and startups to meet this demand as well.
x. For example, the Raising and Accelerating MSME Performance (RAMP) scheme is helping foster innovation, encourage ideation, improve practices and processes, enhance market access, promote greening initiatives, and scale up guarantees to women-owned micro and small enterprises to build overall capacity for India’s local businesses. More than 4 lakh MSMEs have been impacted so far.
xi. On the R&D front as well, there is a strong emphasis on promoting research and development in critical areas to shift away from lithium to other chemistries, such as sodium ion to ensure security of supply chain.
xii. The Anusandhan National Research Foundation (ANRF) has already launched the Mission for Advancement in High-Impact Areas -Electric Vehicle (MAHA- EV) Mission.
xiii. MAHA-EV is designed to build a robust research and development ecosystem for Electric Vehicle (EV) components particularly Battery Cells, Power Electronics, Machines, and Drives (PEMD) and Charging Infrastructure.
xiv. We are similarly working on incentivising such innovators to build startups and begin domestic production once they have a full-fledged product.
xv. As we develop our own technology and create our own innovations, the supply chain is shifting domestically.
2. To control oil imports and pollution, electric vehicles are our future. However, various auto parts for these vehicles come from China including batteries. Hence What are the government’s plans to motivate this industry in India to indigenize the production of many of these imported parts and attain self-sufficiency with requisite quality, to meet both domestic and eventually export demands?
i. Things are changing rapidly now. Since 2014, there has been a significant push towards adoption of Electric Vehicles and building of renewable energy infrastructure.
ii. This was further emphasised at the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC).
iii. India presented the five nectar elements (Panchamrit) of India’s climate action which included reaching 500GW non-fossil energy capacity by 2030, and achieving the target of net zero emissions by 2070.
iv. Since then, there has been a larger emphasis on building a strong global value chain in the renewable energy and electric vehicle segments through local value addition.
v. The Ministry for Power and New & Renewable Energy has launched an EV-Ready India Dashboard which is a digital platform focussed on near real-time Electric Vehicle adoption and forecasts, associated battery demand, charging density, and market growth trends.
vi. It has forecast a 45.5% Compounded Annual Growth Rate (CAGR) in electric vehicles between calendar year (CY) 2022 and CY 2030, increasing from annual sales of around 6.90 lakh electric two-wheelers (E2Ws) in 2022 to 1.39 crore E2Ws in 2030.
vii. From there being barely any EVs or any EV charging and support infrastructure on the road ten years ago, today there are EVs available in every price segment for all consumers.
viii. From the MG Comet EV (starting at around Rs. 7 lakh) to the BMW i7 (around Rs. 2 crore) EVs are available to a greater number of consumers.
ix. This is augmented by expanding EV charging infrastructure across the country, so people are becoming more assured that they will have access to chargers across their journey.
x. Initiatives such as the Faster Adoption & Manufacturing of Electric Vehicles in India (FAME) scheme, National Electric Mobility Mission Plan (NEMMP) 2020.
xi. FAME phase II in particular is stimulating a lot of demand through incentives to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
xii. Most recently, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ with a financial outlay of Rs.10,900 crore, has come into effect from October 1, 2024, and will remain in force until March 31, 2026.
xiii. This scheme will offer upfront incentives for EV purchases and encourage the development of charging infrastructure through creation capital assets even more.
xiv. At the Government as well, we are practicing what we are aiming to achieve through these schemes. More and more Government officials are switching to EVs, and I myself have been utilising EVs.
xv. The significant increase in demand will naturally lead to development of EV manufacturing in the country.
xvi. We have a very conducive EV policy to attract investments and creation of manufacturing facilities in the country.
xvii. The focus is now on ensuring the entire supply chain for EV manufacturing can be positioned in India, whether it is batteries or any other components.
xviii. As I mentioned earlier, through policies such as the Production Linked Incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage and promoting research and development into other chemistries for powering batteries are key components of this vision.
3. The government has certain focus areas where we hope to achieve self-sufficiency. However, this cannot be accomplished without collaborations with developed countries in high-end and advanced technologies yet to be developed in our country. Is the progress of these collaborations in step with the Government of India’s vision? Can you briefly elaborate?
i. Technology transfer from other nations to help our domestic innovators build more is a key focus area for the Government. In various forums, India has been actively advocating for greater global collaboration in critical technologies.
ii. The Hon’ble Prime Minister recently visited the United States of America to boost ties to enable this. The visit including the Hon’ble PM meeting CEOs of leading US-based companies to foster greater collaborations between the two countries in the cutting-edge areas of AI, quantum computing, semiconductors and biotechnology.
iii. Since the launch of the U.S.-India initiative on Critical and Emerging Technology (iCET) the United States and India have made significant strides toward deepening and expanding strategic cooperation across key technology sectors including space, semiconductors, advanced telecommunications, artificial intelligence, quantum, biotechnology, and clean energy.
iv. During the 2024 Quad Leaders’ Summit, a Quad Indo-Pacific Logistics Network pilot project was launched to pursue shared airlift capacity among the four nations and leverage collective logistics strengths.
v. Through the Advancing Innovations for Empowering NextGen Agriculture (AI-ENGAGE) initiative announced at the 2023 Quad Leaders’ Summit, Quad governments are deepening leading-edge collaborative research to harness artificial intelligence, robotics, and sensing, to transform agricultural approaches and empower farmers across the Indo-Pacific.
vi. The Quad announced an inaugural USD 7.5+ million in funding opportunities for joint research and have signed a Memorandum of Cooperation among the four countries’ science agencies to connect research communities and advance shared research principles.
vii. Similarly, under India’s historic presidency of the G20 (Group of 20), substantive deliberations were held to encourage collaboration on broad priority areas such as inclusive and resilient growth; progress on SDGs, green development and Lifestyle for Environment (LiFE); technological transformation and public digital infrastructure.
4. To enhance export potential and support Indian industry, is the Government of India planning on a “Line of Credit” policy or similar policies for the friendly countries? Can you briefly elaborate?
i. The Government is already working on such policies to promote trade and cooperation with certain countries.
ii. Development assistance in the form of concessional Lines of Credit (LOCs) is extended by the Government of India under the Indian Development and Economic Assistance Scheme (IDEAS) through the Exim Bank of India.
iii. In total, more than 300 LOCs worth USD 32 billion have been extended to 68 countries across the world.
iv. These Lines of Credit cover around 600 projects in sectors like railways, roads, agriculture, industry, and Information Technology.
v. In keeping with the high priority we attach with the neighbouring countries under the “Neighbourhood First” Policy, we have extended significant LOCs to Bangladesh, Nepal, Sri Lanka, Myanmar and Maldives.
vi. Global south cooperation is critical for us, and Lines of Credit as an instrument enable Government of India to cooperate with partner countries for infrastructure development, trade relations, and betterment of the lives of people of the partner countries.
5. There are several gaps in India’s Intellectual Property Rights, for example, enforcing the laws in cyberspace, giving IP concerns the same amount of importance as other economic offences, and enforcing IPR in the pharmaceutical industry. Considering that we are actively investing in R&D in several industries, IP laws become paramount. What do you suggest we do to address these gaps to make a strong internationally recognized IP system and provide an environment where there is security to innovate?
i. Our policies for intellectual property rights (IPR) have seen significant reform and supporting initiatives.
ii. The office of Controller General of Patents, Designs & Trade Marks (CGPDTM) has introduced the IP Mitra scheme to support startups in safeguarding their IP rights.
iii. Empanelled IP experts, functioning as IP Mitras, offer guidance on intellectual property matters, assisting startups in obtaining protection for Patents, Designs, and Trademarks.
iv. Startups are offered significant fee reductions for filing and prosecuting their IP applications. Additionally, startups are eligible for expedited examination of their patent applications.
v. Multiple IP awareness programs, reaching more than two million students nationwide through the National Intellectual Property Awareness Mission (NIPAM) are being conducted.
vi. Most critically, significant capacity is being built to handle the increase in IP filing across the country. There has been a significant increase in manpower in IP offices by promoting officers and appointing technical assistants for support.
vii. To improve ease of filing, in collaboration with the World Intellectual Property Office (WIPO), the office CGPDTM has introduced an Indian adaptation of the WIPO diagnostic tool. This tool enables prospective IP applicants, including startups, to conduct an initial evaluation of their IP.
viii. The tool provides valuable suggestions in the form of a report to the user, aiding in the IP application process.
ix. The WIPO – IP Diagnostics [Indian Adaptation] has been translated to regional languages (Bengali, Hindi, Tamil, and Urdu) to enhance accessibility to a broader range of users.
x. Overall, the number of patents granted saw an increase of over 15 times when we compare 2014-15 and 2023-24 (As per data on 30th September 2024 shared by IPR division. Patents granted in 2014-15 were 5,978 while patents granted in 2023-24 were 103057)
xi. Specifically for startups, the number of patent applications filed increased more than 10 times when we compare 2016-17 and 2023-24 (As per data on 30th September 2024 shared by IPR division. Patents filed by startups were 215 in 2016-17 and 2734 in 2023-24. Over 2,800 patents have been granted to startups till date).
The author is a Fellow, India Technology policy, Pacific Forum
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