India’s Green Leap: Pathways to Resilient Growth

India stands at a critical juncture in its development journey, where rapid economic growth must be balanced with environmental responsibility. As the world’s fifth-largest economy and home to 140 crore people, India’s decisions and actions have a profound impact on the global climate trajectory. The country’s bold commitment to achieving net-zero emissions by 2070, while ensuring inclusive and equitable development, sets the stage for an ambitious transformation. India is charting a path toward a greener, more resilient future through energy transition, the adoption of green technologies, strong policy frameworks, climate finance, and active citizen engagement.

The Green Energy Revolution

Unprecedented Growth in Renewables

India’s renewable energy capacity has witnessed remarkable growth, expanding five-fold from 24 GW in 2014-15 to 136 GW in 2024-25. Non-fossil fuel sources now account for 45% of the total energy mix, a significant leap from just 29% a decade ago. The nation has set an ambitious target of 500 GW of non-fossil fuel-based capacity by 2030, with 135 GW already under construction or development.

Solar, wind, nuclear, and biofuels form the backbone of this transition. Solar energy, in particular, has seen exponential expansion, supported by large-scale solar parks and decentralized rooftop installations. Wind energy projects along the western and southern coasts, along with emerging offshore wind initiatives, further diversify the renewable portfolio. Nuclear power, though a smaller component, is gaining renewed attention with the introduction of small modular reactors.

Balancing Fossil Fuels and Clean Energy

Despite the surge in renewables, coal remains the dominant source, contributing around 56% of India’s primary energy supply in 2023. The government’s approach is pragmatic—while scaling up coal production to meet growing energy demands, it simultaneously accelerates the deployment of renewables and nuclear power, creating a diversified and resilient energy mix.

Strategic Policies and Technological Innovation

Policy Support and Regulatory Frameworks

India’s energy transition is underpinned by robust policy support and innovative regulatory mechanisms. Key policies include:

• Renewable Purchase Obligations (RPOs): Mandating industries and power distribution companies (DISCOMs) to procure a fixed percentage of power from renewable sources.
• Emission Trading Systems (ETS): Market-based mechanisms to incentivize emissions reduction.
• Biofuel Blending Mandates: The National Policy on Biofuels requires 20% ethanol blending in petrol by 2030, while thermal power plants must co-fire 5% biomass.

Green Hydrogen Mission

The National Green Hydrogen Mission, with an outlay of INR 19,744 crore (US$2.4 billion) until 2029-30, aims to make green hydrogen a viable alternative for hard-to-abate sectors such as steel, cement, and chemicals. Five states have already announced independent hydrogen policies, attracting significant investment and signalling a shift towards a hydrogen-based economy.

Production Linked Incentives (PLIs) and Domestic Manufacturing

To reduce import dependency and stimulate job creation, India has introduced PLIs for clean energy components such as solar PV modules, batteries, and advanced chemistry cells. This strategy strengthens domestic manufacturing capabilities and enhances economic resilience.

Sustainable Transportation and Electric Mobility

Decarbonizing Transport

Transport accounts for 18% of India’s greenhouse gas emissions. The government is promoting a multi-pronged approach:

• Electrification of Vehicles: The PM E-DRIVE scheme, incentives for EV adoption, and expansion of charging infrastructure aim for 30% electric vehicle penetration by 2030.
• Ethanol Blending: Mandates for 20% ethanol blending in petrol by 2035 reduce reliance on fossil fuels and support rural economies through increased demand for bio-crops.

As of early 2025, the country has reached a blending rate of approximately 19.6%. To meet the E20 target, an estimated 1,016 crore litres of ethanol will be required, with total demand, including other uses, projected at 1,350 crore litres. This necessitates an ethanol production capacity of about 1,700 crore litres, assuming plants operate at 80% efficiency

• Public Transport Expansion: Investments in metro rail, electric buses, and last-mile connectivity enhance urban mobility while reducing emissions.

Indian Railways: A Green Backbone

Indian Railways, one of the world’s largest networks, is targeting 100% electrification by 2030. Initiatives such as regenerative braking, LED lighting, and afforestation are expected to save over INR 14,500 crore (US$1.7 billion) annually and significantly cut emissions.

Financing the Green Shift

Investment Needs and Current Gaps

Achieving India’s climate goals requires annual investments of ₹12.45–16.60 lakh crore, with cumulative needs exceeding ₹830 lakh crore by 2070. Currently, only about 25% of this requirement is being met, underscoring the urgent need for increased private sector participation and innovative financing solutions.

Innovative Financial Instruments

• Green Bonds: The government has issued sovereign green bonds worth INR 16,000 crore (US$2 billion) to finance green infrastructure projects.
• Green Deposits: The Reserve Bank of India’s green deposit framework channels capital into sustainable sectors like renewable energy and green buildings.
• SEBI’s Business Responsibility and Sustainability Reporting (BRSR): Mandates the top 1,000 listed companies to disclose ESG metrics, enhancing corporate transparency and accountability.

Carbon Credit Trading Scheme (CCTS)

India is aligning its CCTS with global standards, enabling domestic participation in international carbon markets. The scheme’s cap-and-trade model operates alongside a voluntary carbon market, providing dual incentives for emissions reduction across industries.

A Multi-Sectoral Approach to Decarbonization

Agriculture and Bioenergy

India’s agricultural sector is being transformed through climate-smart practices:

• Natural Farming: The government aims to convert one crore farmers to natural farming within two years, promoting soil health and reducing chemical residues
• Crop Residue Management: Using crop residues for bioenergy production reduces air pollution and provides alternative income for farmers. Farmers, cooperatives, and Panchayats receive up to 80% financial assistance for purchasing CRM machinery, also plans to build 333 depots with a capacity of 4,500 MT each in Punjab, Haryana, Uttar Pradesh, and Madhya Pradesh to facilitate the collection and utilization of paddy straw.
• Sustainable Aviation Fuel: Plans to introduce a 1% blending mandate for international flights by 2027 support the decarbonization of aviation

Compressed Bio-Gas (CBG)

CBG, produced from organic waste, is an emerging solution for transport and residential energy. While blending is currently voluntary, it may become mandatory post-2025, offering another pathway to reduce fossil fuel dependency.

Urban Sustainability and Infrastructure

Smart Cities and Urban Greening

The Smart Cities Mission, PM Awas Yojana, and waste-to-wealth initiatives are driving urban sustainability. Focus areas include:

• Water Reuse and Circular Economy: The Union Budget 2024-25 emphasizes water resource management, sanitation, and the use of treated sewage water for irrigation in 100 cities.
• Green Buildings: Incentives for energy-efficient construction and retrofitting support the creation of sustainable urban spaces. Interest rate concessions for IGBC (Indian Green Building Council) certified homes.
• Public Transport and Transit-Oriented Development: Investments in metro systems and transit-oriented urban planning reduce congestion and emissions

Waste Management and Zero-Waste Cities

Budget provisions for solid waste management and resource recovery aim to create zero-waste cities, improve municipal finances, and promote circular economy principles. Swachh Bharat Mission Urban 2.0 (SBM-U 2.0) aims to make Indian cities “garbage-free” by 2026. As of September 2024, approximately 38% of legacy waste has been cleared, with efforts ongoing to address the remaining landfill sites.

Critical Minerals and Clean Energy Manufacturing

Critical Mineral Mission

The launch of the Critical Mineral Mission, with exemptions from customs duties on 25 critical minerals such as lithium, cobalt, and copper, aims to reduce import dependency and support domestic production of EVs, batteries, and renewable energy components. Sourcing these minerals sustainably, including from waste streams through recycling, aligns with circular economy principles and supports India’s clean energy roadmap.

Support for MSMEs and Industry

Energy Efficiency and Cleaner Production

The Budget 2024-25 includes plans to conduct energy audits in 60 MSME clusters and provide financial assistance for cleaner energy adoption. Improved credit access for MSMEs and the strengthening of institutions like SIDBI are expected to lower the cost of capital and encourage the adoption of cleaner production technologies.

Policy and Budgetary Support

Union Budget 2024-25: A Strategic Shift

The Union Budget 2024–25 has been hailed as a landmark in aligning India’s economic and developmental goals with sustainability and climate resilience. Key highlights include:

• Green Taxonomy: The introduction of a finance sector vision document and a taxonomy for climate finance to streamline and boost green investments.
• Promotion of Rooftop Solar: The PM Surya Ghar Muft Bijli Yojana aims to provide rooftop solar installations for one crore households.
• Expansion of Pumped Storage and Small Modular Nuclear Reactors: These initiatives diversify the energy mix and enhance grid stability.
• Advanced Ultra-Super Critical (AUSC) Thermal Power Plants: Developed with indigenous technology, these coal-based plants are designed to reduce emissions by 10%, representing a pragmatic approach to bridging the transition gap.

Citizen and Community Engagement

Grassroots Movements and Public Participation

Campaigns like the India Sustainability Mission and the efforts of grassroots heroes such as the Guardians of the Earth (Padma Shri Tulsi Gowda, Jadav Payeng, Rameshwar Nath Kao & Chipko Villagers) highlight the critical role of community engagement. From afforestation drives to school-led sustainability projects, citizen participation is driving tangible change across the country.

Environmental Governance and Outcome-Based Budgeting

Strengthening Institutions and Accountability

The Ministry of Environment’s focus on outcome-based budgeting and improved environmental governance is enhancing transparency and accountability in the implementation of sustainability initiatives. This approach ensures that policy measures translate into measurable results on the ground.

The Road Ahead

India’s Sustainable Development Goals (SDG) Index has improved from 57 in 2018 to 71 in 2023, reflecting consistent progress across multiple dimensions of sustainability. The nation’s journey towards net zero is a multi-decade, multi-stakeholder commitment, encompassing clean energy, sustainable cities, financial innovation, and inclusive growth.

With continued policy innovation, technological advancement, and active citizen participation, India is well-positioned to achieve—and potentially surpass—its net-zero goals before 2070. The mission is vast and the stakes are high, but with concerted action, India is poised to lead the world in green transformation, setting an example for emerging economies and established powers alike.

Conclusion

India’s pursuit of a sustainable future is not just about reducing emissions; it is about securing energy independence, fostering economic growth, and ensuring environmental resilience for generations to come. The country’s holistic approach—spanning policy, finance, technology, and community engagement—demonstrates that environmental stewardship and development can go hand in hand. As India continues to innovate and lead, its journey offers valuable lessons and inspiration for the global community in the fight against climate change.

Authored By:

Ajay Pandey

Chief Manager – Faculty     

Union Learning Academy   

Sales and Marketing -Bhopal