India’s ambition to become a developed nation by 2047 will depend not only on economic momentum but also on how sustainably it powers that growth. Transport still accounts for one of the country’s biggest fossil fuel users, leaving India exposed to volatile global oil prices, rising import bills and deteriorating air quality in its cities. Exiting fossil fuels by 2040 is therefore no longer just an environmental goal. It’s also an economic, public health, and energy security imperative that will shape India’s long-term resilience.
Reducing Oil Dependence is Key to Economic Resilience
India imports nearly 88% of its crude oil requirement, making it one of the world's largest oil importers. This dependency makes the economy vulnerable to geopolitical risks and price risks, which have direct impacts on inflation rates, logistical costs, and industrial competitiveness. With the rising demand for mobility, a reduction in dependency on fossil fuels imported from abroad has become inevitable.
According to the International Energy Agency (IEA), road transport takes up roughly 12% of India’s energy-related carbon dioxide emissions. Without stronger pushes, transport energy demand, along with emissions, could almost double by 2050. However, assertive clean mobility efforts like vehicle electrification, plus smoother public transport options, could then drop transport energy demand by around 30%, and it could also prevent 60% of the projected transport-sector emissions by mid-century.
The financial benefits are equally significant. A State Bank of India report estimates that if electric vehicles account for around 20% of the vehicle market by 2030, India could save nearly ₹1 lakh crore annually in crude oil imports. Similarly, the Council on Energy, Environment and Water (CEEW) projects that achieving 30% EV sales by 2030 could reduce crude oil imports by over ₹1.1 lakh crore, while also strengthening energy security.
Cleaner Mobility is also a Public Health Investment
Clean transportation has a much wider range of advantages other than simply reducing CO2 emissions. The main contributors to air pollution are vehicles that emit PM2.5 and nitrogen oxides, associated with asthma, chronic breathing problems, heart disease and early mortality.
According to the International Energy Agency (IEA), road transportation is responsible for 20%-30% of urban air pollution within India. There is a direct correlation between the use of clean transport and the promotion of healthier cities. The reduction of transport-related emissions alleviates the burden of pollution-related illnesses on the healthcare industry, which reduces the burden on hospitals and decreases long-term healthcare costs. As such, investments in clean mobility should be treated as preventative public health measures, not just as environmental initiatives.
Building an Integrated Mobility Ecosystem
Replacing conventional vehicles with electric ones is only one part of the transition. India must simultaneously expand charging infrastructure, strengthen battery manufacturing and recycling, modernise power grids and ensure greater integration of renewable energy.
Reliable, accessible, and interoperable charging infrastructure will be the backbone of India’s EV transition. Consumer confidence in electric mobility is not only about whether there are vehicles on the road, but also on the assurance that charging is easy, steady, and seamlessly tied into everyday travel. As EV adoption accelerates, expanding a robust charging network across urban centres, highways and emerging markets will be essential to eliminating range anxiety and making electric mobility a practical choice for all.
Progress is already underway, as per NITI Aayog, EV sales have moved from roughly 50,000 vehicles in 2016 to over 2 million in 2024, making up 7.66% of the full vehicle market. India has also turned into a noticeable global player in electric two-wheeler and three-wheeler segments, which basically shows that cleaner transport can grow fast when supportive policies are in place.
To sustain this upward momentum, the Government’s PM E-DRIVE push has set aside ₹2,000 crore to expand public EV charging networks, and it also works alongside domestic battery manufacturing investments routed through the Production Linked Incentive, or PLI, program. These steps matter because they help electric mobility become practical outside the main metros, and they support long-term consumer trust, not just early adoption.
The Road to 2040 Requires Collective Action
India's clean mobility transition cannot be driven by government policy alone. Automobile manufacturers, energy companies, infrastructure developers, financial institutions and consumers must work together to accelerate adoption while ensuring affordability and reliability. The shift also presents a significant economic opportunity by creating jobs across battery manufacturing, charging infrastructure, software, recycling and clean energy.
Moving away from fossil fuel is more than meeting climate goals. It is about safeguarding the economy from global energy disruptions, improving people’s health, boosting local manufacturing capacity and increasing energy security. By 2040, progress in India will not be judged by how many electric cars there are on Indian streets; it will be gauged by how well it has built a complete ecosystem for sustainable transport. Clean mobility cannot just wait for the future; it has become a necessity for the country today.
Akshit Bansal is the Founder and CEO of Statiq, and Raghav Arora is the Co-Founder and CTO. Views expressed are the author's personal.