Sometime back I had covered the Indo-US solar tussle which the US is trying to escalate to WTO. While my previous post focused on the ‘bilateral’ tussle, at that time I wanted to write a followup post on why the consequences of US actions are harmful not only for itself but also the world.
My line of thought was essentially that from a business point of view, USA itself is better placed in allowing the Indian market to first grow. Currently it is still in a nascent stage, and a subsidy backed market cannot have a sustained future. If the market can be allowed to grow, sustain and reach a critical mass it would be much much larger and more importantly much more sustained. Secondly, for timely corrective actions to be taken for stopping human induced climate change, it is absolutely essential that the technology development be (and allowed to be) promoted in all countries.
While I was researching on these lines of argument, I was pleasantly surprised to find others who have been arguing in favor of India. In this article on HuffingtonPost, the authors argue why US is wrong in challenging India. You should read it, its written quite well!
First, the growth and success of India’s solar industry is being undermined by the power of its coal industry, which receives enormous subsidies and enjoys strong political backing in India. One way to challenge the power of the fossil fuel industry in India is to successfully develop a viable domestic renewable energy industry. The use of domestic content rules is one way to develop a domestic solar industry with skin in the game, which is necessary to counter the power of the fossil fuel industry.
And then I chanced upon the follow up article to the previous once on HuffingtonPost, it further advocates India’s right to develop its own solar manufacturing industry. I will try not to reinvent the wheel and leave you with the original articles.
PS: I was really happy that the first article was well received. Thank you for that!