Amitabh Kant calls for radical transformation in the transportation sector, warns of $200 billion opportunity at stake
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Amitabh Kant calls for radical transformation in the transportation sector, warns of $200 billion opportunity at stake
Former NITI Aayog CEO Amitabh Kant declared today at the India Clean Transportation Summit 2025 that India needs to undertake a "radical transformation" in its transportation sector and make clean air the country's top priority.
Kant painted a stark picture of Delhi's air quality crisis, noting that the capital becomes "unlivable for three months" from October onwards. He further stated that due to this, India had to prepone the G20 summit from November to September, specifically to ensure good air quality for international delegates. "I think this should be India's number one mission," Amitabh emphasised, referring to cleaning up the country's air quality.
India Lags Behind China in EV Adoption
The former NITI Aayog chief highlighted India's dismal performance in electric vehicle adoption compared to global leaders. "Approximately 20 million electric vehicles were sold in 2024 in the world, with China leading by 60% and India lagging at 1%," he stated, underscoring the massive gap in clean mobility adoption.
He pointed to Beijing as a success story, where electric vehicle adoption led to a dramatic 55% drop in PM 2.5 levels between 2012 and 2022. "We need to transform the energy profile of the transport sector," Kant declared, positioning this transformation as a "$200 billion opportunity" for India.
To ensure that this transformation takes place in a proper manner, Kant outlined five key pathways for India's clean transport future:
1. Target High-Pollution Cities: "Identify cities with high tailpipe emissions and over 2 million population and push for 100% electrification in both two wheelers and three wheelers," he proposed, suggesting that 10 major cities should achieve 100% EV adoption by 2030.
2. Phase Out Old Vehicles: Within the next 24 months, the country should "either retire or retrofit old internal combustion vehicles," which in Delhi alone could create demand for 2 million EVs.
3. Mandate Zero Emission Vehicles: New registrations of autos, light commercial vehicles, taxis, and last-mile delivery vehicles should be mandated as zero-emission in major cities.
4. Bulk Procurement: Following the successful LED bulb model, India should "pull the demand and push down prices" through bulk procurement of school buses, airport taxis, and auto-rickshaws.
5. Build Battery Ecosystem: Accelerate the development of battery manufacturing capabilities, including gigafactories under the PLI scheme.
Strong Leadership Required
Kant didn't mince words about the kind of leadership needed for this transformation. "Weak-hearted administrative and political leadership will not be adequate. We need strong political leadership to deliver this," he stated firmly.
Heavy-Duty Vehicle Opportunity
Kant highlighted the potential in heavy-duty vehicles, citing China's example, where "over 1.5 lakh e-trucks" are driven by e-commerce players who have completely abandoned fossil fuel vehicles. He suggested that mandating e-commerce companies to switch to electric trucks could "unlock over 2 lakh crores in green industrial investment and create close to 5 lakh jobs in India."
CAFE Standards: The Missing Piece
One of Kant's strongest criticisms was reserved for India's delayed Corporate Average Fuel Economy (CAFE) standards. He called the current situation "a policy failure," stating that "CAFE norms remain trapped in very bureaucratic, outdated norms."
"CAFE norms are not just another regulation. They are the cornerstone that will determine whether India's transport sector becomes a climate solution or leaves India behind with a persistent problem," he emphasised.
He called for three decisive actions: notifying CAFE Stage 3 norms as top priority, accelerating fuel efficiency norms for heavy-duty vehicles, and aligning various policy schemes under a unified transport decarbonization framework.
In his concluding remarks, Kant stressed the urgency of comprehensive action. "The moment for India to do incremental action is long gone. It's all past. We need integrated, ambitious policy implementation, which can make India a leader in transport mobility."
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