India & EV Revolution: Environmental impact Challenges !

India & EV Revolution: Environmental impact Challenges, and Workforce Transformation

CLIMATE CHANGE

KAKALI DAS

The transportation sector, an integral part of our daily lives, holds significant environmental implications. Globally, it ranks as the third-largest contributor to greenhouse gas emissions.

According to the International Energy Agency (IEA), the transportation sector contributes approximately 24%, or a quarter, of global CO2 emissions.

In 2021, the majority of these emissions—74%—were generated by road transport, including passenger vehicles, trucks, and buses.

A similar trend was observed in India, where the transport sector accounted for 13–15% of the country’s total greenhouse gas emissions, according to the Ministry of Environment, Forest, and Climate Change. Notably, 90% of these emissions were attributed to road transport alone.

Vehicle ownership in India is on the rise, but there are encouraging signs of change. This year alone, an impressive 1,78,00,000 vehicles have been registered, with 11% being pure electric vehicles—powered entirely by electricity without any conventional fuel backup. These electric vehicles rely on lithium-based batteries for their energy needs.

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A 2021 Niti Aayog report projected that by 2030, 30% of new vehicles in India would be electric—a significant increase from the current 11%. This highlights the growing prominence of electric vehicles in shaping the country’s transportation landscape.

Let’s now explore the impact on jobs. The Ministry of Skill Development and Entrepreneurship projects that the EV industry could generate 1 crore indirect jobs and 5 crore direct jobs by 2030. Investments in the ecosystem are steadily increasing, driven by initiatives such as the FAME India Scheme and the Production Linked Incentive (PLI) Scheme.

Are we truly ready for this transition? It’s not that straightforward. India’s reliance on imports for critical minerals such as lithium, cobalt, and nickel poses a significant challenge, as these materials are essential for manufacturing EV components. To address this, the government is actively exploring strategies to secure supply chains and is even considering domestic mining opportunities.

However, concerns remain about whether this transition will genuinely reduce environmental degradation or simply relocate resource extraction to other regions.

Another pressing concern is the impact on jobs in the traditional internal combustion engine automobile sector. The shift from fossil fuel-based vehicles to EVs is expected to significantly transform the job market. Workers involved in manufacturing components such as steering systems or suspensions may face a relatively lower risk of job loss.

However, workers in engine and fuel injection manufacturing, which employ a significant workforce, face a high risk of job displacement unless they upskill to transition into EV production. This underscores the importance of skill development in ensuring job security during this transformation.

Additionally, the emerging EV industry will heavily rely on artificial intelligence and vertical integration. Jobs will evolve to demand expertise in software development, mechanical design, and other specialized fields. Researchers at IIT Kanpur predict that this transformation will profoundly impact manufacturing, sales, services, and value chains, leading to significant changes in the employment landscape.

The promising opportunities, however, lie in IT-driven jobs. Research from IIT Kanpur highlights that the EV ecosystem will generate roles focused on developing electric motors, controllers, and the software required to operate them.

However, these jobs will demand different skill sets compared to traditional vehicle manufacturing. This creates a strong case for developing new skills for both existing and incoming workers to ensure a just transition.

Employment mapping at the local, state, and national levels is essential to effectively address the changes this shift will bring to the entire value chain.

A separate NITI Aayog report estimates that India’s local demand for EVs could reach 11 to 13 million units annually by 2030, leading to a need for skilling around 2 to 2.5 lakh people by then. This includes workers for roles in cell component manufacturing, EV assembly, charging infrastructure, and more.

Several states, including Maharashtra, Tamil Nadu, Delhi, and Punjab, have already launched dedicated schemes focused on reskilling and developing new skills for the EV sector, with each aiming to create 1 to 1.5 lakh jobs.

Ultimately, the success of India’s EV ambitions depends on how effectively we train and reskill our workforce. The survival of small and medium-sized industries that supply components to the automotive sector also relies on this transition.

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