Mains answer practice — GS 3 : Questions on electric highways and importance of Free Trade Agreements (Week 101)

Indian Express

06-05-2025

UPSC Essentials brings to you its initiative for the practice of Mains answer writing. It covers essential topics of static and dynamic parts of the UPSC Civil Services syllabus covered under various GS papers. This answer-writing practice is designed to help you as a value addition to your UPSC CSE Mains. Attempt today's answer writing on questions related to topics of GS-3 to check your progress.
Discuss the significance of India's plan to develop electric highways under the National Highways for Electric Vehicles (NHEV) initiative.
Introduction
— The introduction of the answer is essential and should be restricted to 3-5 lines. Remember, a one-liner is not a standard introduction.
— It may consist of basic information by giving some definitions from the trusted source and authentic facts.
Body
— It is the central part of the answer and one should understand the demand of the question to provide rich content.
— The answer must be preferably written as a mix of points and short paragraphs rather than using long paragraphs or just points.
— Using facts from authentic government sources makes your answer more comprehensive. Analysis is important based on the demand of the question, but do not over analyse.
N ote: This is not a model answer. It only provides you with thought process which you may incorporate into the answers.
Introduction:
— National Highways for Electric Vehicles (NHEV) is a pilot program undertaken by the Government of India, initially supported by the Ministry of Commerce and Industry, to convert highways into E-Highways.
— NHEV is created and funded using a Hybrid PPP model known as Annuity Hybrid E-Mobility (AHEM), and it is currently in the process of expanding to 5500 km of e-highways on the Bharatmala and Sagarmala routes from Delhi to Kanyakumari via the Mumbai and Kolkata corridors.
— In her February Budget speech, Union Finance Minister Nirmala Sitharaman advised states to develop a three-year pipeline of PPP infrastructure projects and seek support from the India Infrastructure Project Development Fund (IIPDF).
— The National Highways Authority of India (NHAI) would provide funding for the projects, as well as land for charging stations.
— According to technical experiments undertaken by NHEV, a pilot program under the government's Ease of Doing Business strategy, e-highways will include public charging stations every 50 kilometres. These will aim to achieve at least 30% charging point usage and a three-year breakeven period.
What is India's approach to EV infrastructure?
— India's approach to developing EV infrastructure has been misguided from the start, with a greater emphasis on installing charging stations in cities—where vehicle movement is less predictable—rather than on highways, where fleet-operated electric buses, cars, and trucks travel in more consistent patterns.
— EVs would have been running on roads, instilling confidence in cities.
— It has also created charging station designs and predicted future earnings based on specified characteristics, with the goal of bringing EV charging stations up to the same level of investment clarity as petrol pumps.
Conclusion:
— To fund India's e-highways, NHEV has created a model called Annuity Hybrid E-Mobility (AHEM), which is based on the Hybrid Annuity Model (HAM) used for PPP road projects and guarantees a three-year breakeven period.
— Under this arrangement, NHEV constructs charging stations with government assistance, and enterprises that supply chargers and EVs, such as fleet operators, are paid a predetermined sum in the first year to cover capital expenditures. After that, they receive variable fees according to how large their fleets grow and how frequently the chargers are utilised.
Points to Ponder
Read more about EV infrastructure.
How can this project contribute to India's goals of reducing logistics costs, oil imports, and carbon emissions?
Related Previous Year Questions
Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)
'Investment in infrastructure is essential for more rapid and inclusive economic growth.' Discuss in the light of India's experience. (2020)
N ote: This is not a model answer. It only provides you with thought process which you may incorporate into the answers.
Introduction:
— Free trade agreements (FTAs) with the United States and the European Union, as well as the formation of a favourable environment for foreign joint ventures (JVs), would help integrate India's developing auto component industry into global value chains.
— According to a new NITI Aayog report, a combination of fiscal and non-fiscal incentives was proposed. The NITI Aayog anticipates India's auto component exports to quadruple to $60 billion by 2030, with the country's share in global value chains increasing from 3 to 8%.
Body:
You may incorporate some of the following points in your answer:
— The majority of M&As (mergers and acquisitions), whether in automotive or other industries, take place in the United States, the European Union, and a few other nations. That is why free trade agreements with the United States and Europe are so crucial.
— India is currently pursuing a bilateral trade agreement with Washington and an FTA with Brussels. The paper stated that 'strategically negotiated' FTAs can promote foreign investment, knowledge transfer, and innovation.
— NITI Aayog Member Arvind Virmani emphasised the importance of FTAs in enhancing export competitiveness, saying such agreements might help raise investment flows into India and promote the formation of international joint ventures.
— To help international joint ventures prosper in India, it advocated for a business-friendly environment bolstered by tax exemptions, subsidies, and investment promotion programs.
— By collaborating with international firms like Germany, Japan, and the United States, Indian manufacturers can obtain access to cutting-edge technology, experience, and resources, bridging the gap in specialised manufacturing capabilities.
— The research advocated a new approach for transforming brownfield auto clusters into global manufacturing hubs. There is also a requirement to conduct a complete audit of current auto clusters to assess utilisation, implementation issues, and facility conditions.
Conclusion:
— According to the report, India's auto component business has a 10% cost disadvantage over China, with an extra 20% gap in manufacturing equipment.
— China has a well-integrated supply chain that extends from raw minerals to high-value-added products, but India lacks such depth in its supplier ecosystem.
— Despite being the world's fourth-largest vehicle producer behind China, the United States, and Japan, India accounts for only 3% (or approximately $20 billion) of worldwide auto component commerce.
Points to Ponder
Read more about FTA
Read about India-US trade and India-EU trade
Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our government for this purpose? (2020)