DAILY QUESTIONS & MODEL ANSWERS
Q1. Discuss the potential and difficulties facing Hybrid Electric Vehicles in India in the times to come.
Paper & Topic: GS II – Government Policies and Interventions
Model Answer:
Introduction:
- While battery electric vehicles exclusively employ an electric motor and battery, completely abandoning conventional engines, conventional cars rely on an internal combustion engine for power. The benefits of both of the aforementioned vehicle types are combined in hybrid autos. They have an electric motor and a battery in addition to the internal combustion engine.
Potentials:
Changes in climate:
- Reduced use of fossil fuels and related emissions are now necessary due to the issue of the world’s temperature rising too quickly.
- India has pledged to reduce its GHG emissions intensity by 33% to 35% by 2030 compared to 2005 levels.
- Fuel Efficiency: By increasing mileage, turning off the combustion engine while travelling at slower speeds, and using the battery to power the air conditioning when the car is stopped, it significantly improves fuel efficiency.
- Energy security: More than 80% of India’s transportation fuel is imported. By lowering reliance on imported crude oil, HEVs can increase India’s energy security.
- Innovation: It will promote the use, application, and development of cutting-edge technology in India.
- Low-carbon and Clean Energy: Better electricity-generating technologies have resulted in cost savings as a result of the move towards renewable energy sources. This has opened the door to the prospect of low-cost, low-carbon, and clean grids.
Problems:
- Satisfying Demand: In order to fulfil the demand generated by this system, the government must make sure that it does so. Therefore, it will be necessary to develop more sources of electricity generation.
- Technological challenges: India lacks the necessary technology to produce the batteries, semiconductors, controllers, and other electronics that are the foundation of the electric vehicle sector.
- Absence of experienced labour: Maintaining HEVs requires a higher degree of expertise and comes at a higher expense. For the purpose of developing such skills, India lacks specialised training programmes.
- Cost: It will be necessary to accrue the high cost linked with HEVs. For this, issuing municipal bonds might be quite beneficial.
- Pollution-free: The government must make sure that the system used to generate electricity is free of pollutants. The government may make this happen by raising the tax on production that uses coal.
Summary:
- As a result, the quickly expanding HEV market has the potential to stimulate manufacturing in India. The transportation, power, and urban planning sectors—the three pillars of the HEV industry—need to coordinate well in order to facilitate the widespread adoption of HEVs
Q2. There has been a 28% increase in the Gross Goods and Service Tax (GST) Collection recently. What can be the cause of the increased GST collection?
Paper & Topic: GS III – Indian Economy
Model Answer:
Introduction:
- The Good Service Tax (GST) is an indirect tax that was created by combining over 17 different indirect taxes. Since the 1st of July 2017 GST went into effect, the second-highest collection occurred in July 2022.
Causes of Increased GST Collections:
- End of the GST Compensation Regime: For five years following the taxation regime’s rollout, states were guaranteed compensation under the GST (Compensation to States) Act, 2017 at a compound annual rate of 14% from the base year 2015–16 for losses resulting from the implementation of the taxation regime. June 30 was the end of this time. No decision to extend the compensation mechanism was made during the GST council meeting. Since the compensation regime is ending, state authorities are enforcing laws more strictly, which has increased tax revenue.
- E-way bills and action against tax evaders: According to experts, state authorities’ actions against tax evaders have improved compliance and contributed to the rise in GST collections. The amount of e-way bills created in June 2022 (7.45 crore) exceeded the amount generated in February 2022 (6.91 crore).
- High inflation: According to the Consumer Price Index (CPI), India’s headline retail inflation rate increased from 7.04% in May 2022 to 7.01% in June 2022. This demonstrates that rising inflation will lead to higher gross GST revenue collection.
- Increased Consumption: The nation’s overall consumption of goods and services has increased recently. For example, India’s fuel consumption in June increased by 17.9% over the previous year, according to government data, indicating that the country’s demand—which makes it the world’s third largest oil consumer—is returning to pre-pandemic levels. A rise in fuel consumption indicates a rise in total consumption.
- Although the government is concerned about the high rate of inflation, there are some positive aspects to the crisis, such as higher consumption and improved tax compliance. Increased gross GST revenue collection is a clear sign that the Indian economy is becoming better.
