Featured in The Exponent, Purdue’s university paper

We were featured in The Exponent, Purdue’s student-run newspaper!

Student organization aims to improve Indian civic involvement

 

Purdue exponent

 

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Powering India: Energy subsidies and their consequences

Based on a recent group discussion, the STTI Chapter at Purdue explored the issue of fuel subsidies in India, and its long-term systemic consequences.

Energy subsidies have wide-ranging economic consequences. While aimed at protecting consumers, subsidies aggravate fiscal imbalances, crowd-out priority public spending, and depress private investment, including in the energy sector. Subsidies also distort resource allocation by encouraging excessive energy consumption, artificially promoting capital-intensive industries, reducing incentives for investment in renewable energy, and accelerating the depletion of natural resources. Most subsidy benefits are captured by higher-income households, reinforcing inequality. Even future generations are affected through the damaging effects of increased energy consumption on global warming.

Energy-subsidies in India
The long-term effects of fuel subsidies in India are graver than we realise.