When the IMF’s Indian-origin Executive Director, Krishnamurthy V Subramanian, said, “India could become a $55 trillion economy by 2047,” his words echoed Prime Minister Narendra Modi’s vision to see a “Viksit” (developed) Bharat at the 100th anniversary of India’s Independence. According to reports, India invested $14.5 billion in FY22, indicating a 125 per cent increase from the previous year. The nation can unlock $1 trillion by 2030 and $15 trillion by 2070.
A recent World Bank report states, “India remains the world’s fastest-growing major economy, growing at a rapid clip of 8.2 per cent in FY23/24.” India has taken huge strides in infrastructure development, adding 34 km of roads per day in 2023-24 and adding a city the size of London to its urban population annually. Millions have been pulled out of poverty, and there are 82 mobile phones for every 100 people. At this stupendous rate of development, a country’s dependency on carbon products like coal and greenhouse gas-emitting oil typically increases, with the environment being the first casualty. However, this is not the case for India.
Countries that have made green transitions generally became developed first and then focused on green technologies. India, however, is an outlier, having chosen the path of greener technologies while simultaneously working on its economic development. The country has taken a climate-positive approach.
New Model for Green Transitions
India is the first G20 country to meet its energy emission goals pledged at the Paris Agreement. In his address to the Indian diaspora in New York last month, Prime Minister Modi stated that India’s carbon emissions account for just 4 per cent, affirming, “We have no role in destroying the world.”
To achieve India’s net-zero goals by 2070, the PM has launched various schemes that aim to position India as a global leader in green transitions by harnessing the forces of nature: vayu (wind energy), varun (hydro energy), and surya (solar energy). This aligns with India’s dharmic philosophy of achieving seamless integration with the rhythms of the natural world. India aims to install 500 gigawatts (GW) of renewable energy capacity by 2030, which will account for 50 per cent of its total electricity capacity. Currently, India has already installed around 180 GW of non-fossil fuel energy.
Domestic Initiatives
The Bureau of Energy Efficiency (BEE) has launched the PAT (Perform, Achieve, and Trade) scheme, a regulatory instrument designed to reduce specific energy consumption in energy-intensive industries. Companies that successfully reduce their excess energy consumption receive certificates, which can be traded for other benefits. This initiative is expected to significantly reduce energy consumption in sectors such as petrochemicals, iron and steel, and construction.
The National Automotive Board is also actively promoting the adoption of electric and hybrid vehicles through the FAME 1 and 2 schemes (Faster Adoption and Manufacture of Hybrid/Electric Vehicles). Public transport in Tier 1 and Tier 2 cities is rapidly transitioning to electric vehicles, and government departments are shifting towards hybrids and EVs for official use. India has also rigorously adopted BS VI emission norms in its automobile policy, leading to the phasing out and scrapping of old, polluting vehicles.
In 2016, Prime Minister Modi launched the Ujjwala Scheme to provide access to clean cooking fuels like LPG to rural women who previously relied on traditional and polluting fuels such as firewood, cow dung cakes, and coal. These fuels not only had a detrimental effect on their health but also harmed the environment. From 2014 until February 2024, clean gas connections to BPL (Below Poverty Line) households have more than doubled, increasing from 14.52 million to 32.75 million households.
According to data from investindia.gov.in, as of August 2024, India has an installed renewable energy capacity of 199 GW. This includes power from wind, solar, waste-to-energy (WTE), small hydro, large hydro, and biomass sources. India now ranks 4th globally in renewable energy capacity additions. Additionally, India ranks 4th in solar power capacity and 5th in wind power capacity worldwide.
Policy Initiatives
India has implemented a range of policies to support the green energy transition, including the creation of solar energy parks, the waiving of inter-state transmission charges, and the liberalisation of foreign investment norms. Initiatives such as the Production Linked Incentive (PLI) scheme, G20 discussions on energy, Mission LIFE, PANCHAMRIT, the International Solar Alliance (ISA), and the Coalition for Disaster Resilient Infrastructure (CDRI) are all steps in the right direction.
To achieve the net-zero targets, Prime Minister Modi launched the Surya Ghar Muft Bijli scheme in 2024, which provides free electricity to Indian households by incentivising and subsidising rooftop solar panels. Through this initiative, households with access to rooftops will be able to generate electricity not only for their own use but also to sell surplus energy back to the grid, thereby generating enough clean energy to meet the nation’s needs.
The government has also incentivised the development of large-scale solar power projects through the PLI Scheme for the National Programme on High-Efficiency Solar PV Modules, launched on April 7, 2021, aimed at achieving giga-watt (GW) scale manufacturing capacity in high-efficiency solar PV modules. This initiative is set to make India self-sufficient in the manufacturing and operation of large solar power projects.
In addition, there is a significant push towards hydrogen-derived energy. The Strategic Intervention for Green Hydrogen Transition (SIGHT) aims to make India a global hub for green, hydrogen-based energy, enabling the country to become atmanirbhar (self-sufficient) in green energy by 2047.
However, the devil is in the details. Given that India is a densely populated country and agriculture plays an integral role in its economy, focusing on biofuels derived from organic green waste will significantly reduce emissions. Solutions can be hyper-local, and local technologies should be developed by the communities themselves.
If we prioritise electrolysers and ammonium production, the availability and distribution of green hydrogen (H2) can work wonders for industrial production, with less competition compared to solar cell manufacturing. Thorium-based, small-scale nuclear reactors are also crucial, as India possesses abundant thorium resources, which have been illicitly smuggled out of the country. We understand that money follows technology, and we must focus not only on technology transfer at the governmental level but also on developing our indigenous technologies.
A SWOT analysis is essential to assess the presence of natural resources and their optimal usage. For instance, much of Europe relies on gas, which they classify as a green fuel. So why isn’t India focusing more on coal gasification? This would make our economy more competitive and cost-efficient in the long term. Coal gasification can be used to produce a variety of products, including synthetic natural gas (SNG), fuels like methanol and ethanol, as well as ammonia for fertiliser and petrochemicals.
Fresh local ideas require funding and support to make India truly atmanirbhar (self-reliant). We also need to revisit the vehicle scrappage policy and assess its impact on net-zero targets. Retrofitting older vehicles and evaluating their mileage could offer solutions that contribute to future economic growth.
Job Creation and Skill Development in Green Sector
India’s renewable energy sector could generate 3.4 million jobs by 2030. The country is actively promoting skill development in green jobs through various government initiatives and schemes. Programmes like the Skill India Mission and the Green Skill Development Programme (GSDP) aim to create a skilled workforce in areas such as pollution control, waste management, and renewable energy. Additionally, the government is pushing for green technologies in sectors like agriculture, forestry, and wildlife conservation. These efforts align with India’s commitment to sustainability and self-reliance, fostering job creation in eco-friendly industries.
With a focus on training and certification, India is building a green economy for the future. Currently, 44 GSDP courses are offered at 87 locations across India, with durations ranging from 80 to 550 hours. These courses cover a wide range of fields, including pollution monitoring, waste management, environmental impact assessments, forest fire management, and wildlife conservation. Topics also encompass water budgeting, sewage treatment, mangrove conservation, and bamboo management.
As a frontrunner in the global fight against climate change, India is positioning itself at the forefront of the race towards a cleaner and greener world. This is being driven through a combination of proactive policy-making and innovative business models, reflecting India’s vision for the future.
The pathway to Aatmanirbhar Bharat will evolve through the development of new and renewable energy technologies, processes, materials, components, sub-systems, products, and services. Deploying these indigenously developed systems and products will be crucial in achieving this target.
Views expressed in the above piece are personal and solely those of the authors. They do not necessarily reflect News18’s views.
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