What to Read in Indian Express Editorial (Topic and Syllabus wise)

Editorial 1 : A Green Hybrid for Delhi

Introduction: Delhi is ranked 3rd most polluted city globally with vehicular emissions contributing 39% of the pollution. Air pollution costs Delhi 1.06–5.8% of annual GDP.

Benefits of Flexi-Fuel Vehicles (FFVs)

• Environmental Advantages
  1. 40% reduction in CO₂ emissions with E100 (100% ethanol) compared to petrol.
  2. Cuts pollutants like particulate matter, carbon monoxide, and greenhouse gases.
• Economic Savings
  1. Transitioning half of Delhi’s petrol fleet (15.23M vehicles, 82% petrol-dependent) to FFVs could reduce overall carbon emissions by 16.5%.
  2. This will lower the healthcare and productivity losses linked to pollution.

 

Policy and Infrastructure Readiness

• Government Initiatives
  1. Ethanol Blending Programme (EBP): Targeting E20 (20% ethanol-blended petrol).
  2. Proposed tax incentives: Reduce GST on FFVs from 28% to 5% (aligned with EVs).
• Ethanol Infrastructure
  1. Proximity to major ethanol producers (Uttar Pradesh, Haryana).
  2. Existing petrol pumps can distribute E100 with minimal retrofitting.

 

Industrial and Consumer Ecosystem

• Industrial Capacity: NCR houses automotive manufacturers, R&D centres, and think tanks, enabling FFV development.
• Consumer Trends
  1. Rising demand for greener mobility due to fuel costs and environmental awareness.
  2. Delhi’s scrappage policy and Supreme Court mandates create opportunities for FFV adoption.

 

Challenges and Opportunities

• Challenges
  1. Infrastructure scaling: Ensuring ethanol supply chain efficiency.
  2. Consumer awareness: Educating users about FFV benefits and usability.
• Opportunities
  1. Leverage Delhi’s policy enforcement track record (e.g. CNG adoption in 1993).
  2. Position Delhi-NCR as a national hub for alternative fuel innovation.

 

Case Study: Brazil’s FFV Success

• Brazil’s FFV adoption surged from 0% to 80% of cars post-2000s.
• The consumer shift in Brazil is driven by policy consistency and incentives.
• Relevance to Delhi: Delhi’s past success with CNG proves transformative policies can work.

 

Way Forward: Recommendations

• Immediate Steps
  1. Introduce tax breaks and subsidies for FFV buyers.
  2. Pilot E100 distribution in select Delhi-NCR petrol pumps.
• Long-Term Strategies
  1. Integrate FFVs into public transport fleets.
  2. Collaborate with automakers for localized FFV production.

 

Conclusion: Delhi-NCR’s combination of severe pollution, policy agility, industrial capacity and ethanol infrastructure positions it as an ideal testing ground for FFVs. By replicating Brazil’s model and building on past successes like CNG adoption, Delhi could pioneer a cleaner mobility revolution, improving air quality and public health while setting a national precedent.

 

Editorial 2 : The China Option

Context: Economic relations with China could open up space for manoeuvre.

 

Introduction: Global FDI Trends

• Decline in FDI Flows
  1. FDI inflows to developing economies fell by 6% in 2023 and 2% in 2024 (UNCTAD data).
  2. Global uncertainty, geopolitical tensions, and supply chain diversification strategies contribute to the slowdown.
• Shift in Investment Destinations
  1. Countries like Vietnam, Thailand, Cambodia, and Malaysia are emerging as preferred destinations for firms diversifying away from China (China Plus One strategy).
  2. India’s success in capturing this shift has been limited, as noted by a Niti Aayog report.

 

India’s FDI Performance

• Peak and Decline: Record high of $84.8 billion in FDI inflows in 2021–22.
• Subsequent slowdown
  1. $71.2 billion in 2023–24 (a 16% drop from the peak).
  2. $62.4 billion in the first nine months of 2024–25 (April–December).
• Challenges
  1. Stricter regulations on Chinese investments post-Galwan clashes (2020).
  2. Visa restrictions for Chinese workers/technicians and tariff/non-tariff barriers.

 

Policy Shift: Reassessing China Engagement

• Proposed Relaxations
  1. Diluting restrictions on Chinese trade and investments.
  2. Potential collaborations: Example – JSW Group’s acquisition of MG Motors from China’s SAIC Motor.
  3. Easing visa norms and reducing tariff/non-tariff barriers.
• Industry Advocacy: Indian businesses seek smoother access to Chinese expertise for facility setup, staff training and integration into global supply chains.

 

Rationale for Easing Restrictions

• Boosting Manufacturing
  1. Capital-scarce India needs FDI to strengthen manufacturing and job creation.
  2. Chinese investments could enhance export competitiveness (e.g. electronics, EVs).
• Global Supply Chain Integration: Lowering trade barriers aligns with recommendations from the Economic Survey 2023–24 i.e. focus on FDI from China to boost exports to the US (mirroring East Asian models).
• US-China tariff war: Reciprocal tariffs effective from April 2 may create opportunities for India to attract diverted investments.
• Countering Anti-Globalization Trends: Unlike Western economies, India can leverage globalization by welcoming trade and FDI.

 

Challenges

• Security Concerns: Balancing economic gains with national security risks post-Galwan.
• Competition: Southeast Asian nations already have a head start in attracting China-diversified investments.
• Domestic Industry Impact: Ensuring local industries are not overshadowed by foreign entrants.

 

Way Forward

• Streamline FDI approval processes.
• Prioritize sectors aligned with export growth (e.g. electronics, green energy).
• Strengthen trade diplomacy to position India as a stable alternative to China.

 

Conclusion: India’s potential reopening to Chinese investments reflects a pragmatic shift to capitalize on global supply chain realignments. The success hinges on balancing economic openness with strategic safeguards.