As per The Economic Times report, dated April 11, 2023
“Electrie Vehicle sales cross 10 Lakh mark in financial year 2022-23.”
Analyse the likely impacts of this news on Gross Domestic Product
(GDP) and Welfare.
Ans. Impact on GDP:
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Increased sales of electric vehicles boost domestic manufacturing, employment, and investment in the electric vehicle industry.
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Growth in electric vehicle sales stimulates demand for related industries such as battery manufacturing, charging infrastructure development, and renewable energy generation, contributing to GDP growth.
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Electric vehicles’ environmental benefits, such as improved air quality and reduced reliance on fossil fuels, lead to long-term environmental benefits, positively impacting GDP.
Impact on Welfare:
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Electric vehicles contribute to reducing air pollution and greenhouse gas emissions, enhancing public health and environmental quality, thus improving overall welfare.
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Lower operating and maintenance costs of electric vehicles compared to traditional vehicles lead to cost savings for consumers, improving disposable income and overall welfare.
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Increased adoption of electric vehicles encourages innovation and technological advancements in the automotive sector, leading to more efficient and affordable electric vehicle models, benefiting consumers and society as a whole.
