India’s rapid economic growth presents a fundamental challenge: how do we meet surging energy demand while staying aligned with climate goals? As the world’s most populous country, with an expanding industrial base and urban footprint, India’s energy use is rising quickly. At the same time, it has made ambitious climate commitments — and the world is watching.
At COP26, India pledged to achieve net-zero emissions by 2070 and committed to installing 500 GW of non-fossil fuel power capacity by 2030. As per government and independent projections, meeting this milestone could reduce India’s projected emissions by up to 1 billion tonnes by 2030 — though this depends heavily on execution .
Policy and Institutional Push
The government has rolled out multiple initiatives:
- National Green Hydrogen Mission: Budget of ₹19,744 crore, aiming for 5 MMT annual green hydrogen production by 2030 to cut fossil fuel dependence.
- PM Gati Shakti National Master Plan: Developing multimodal infrastructure to boost green logistics and reduce emissions in supply chains.
- Carbon Credit Trading Scheme: A market mechanism to reward sustainable practices like afforestation and water conservation.
- Ecomark Certification: Promoting sustainable consumer goods (though uptake remains limited).
- SEBI ESG Disclosure Norms: India’s top 1,000 listed companies must report on their environmental, social, and governance (ESG) performance annually.
This reflects a shift toward embedding climate goals in industrial and financial policy — but progress is uneven.
The Bottlenecks India Must Confront
- Grid and Transmission Constraints
India’s renewable build-out has outpaced its transmission network. Over 50 GW of renewable capacity remains stranded due to grid bottlenecks . Without accelerated grid expansion, even the best solar and wind projects risk underutilization. - Land Use Conflicts
Large solar and wind parks require vast tracts of land. A geospatial study shows that 74% of solar installations overlap with agricultural or ecosystem land . This raises the risk of displacement and agrarian pushback, unless India prioritizes non-arable and degraded land. - Nuclear Ambitions and Delays
India targets 22,480 MW of nuclear capacity by 2032 . But cost overruns, public resistance, and financing delays have slowed progress. Nuclear energy can be part of the mix, but delivery risks remain high. - Transport Transition Gaps
While EV adoption is rising, charging infrastructure and battery supply chains lag. Biofuels and alternative fuels need scale to cut oil dependence. Without strong action in transport, emissions will keep rising. - Agricultural Emissions
Agriculture contributes significantly to India’s methane emissions — from paddy farming to stubble burning. Green transition strategies must address sustainable farming, biofertilisers, and crop residue management, or they risk being incomplete. - Federal Politics
Energy is a concurrent subject under India’s Constitution. While the Centre announces ambitious programs, states often delay execution due to competing interests. Coordination between state and central governments will decide outcomes.
Industry and Jobs Dimension
Industry is already responding:
- The power sector is diversifying into wind, solar, and green hydrogen.
- PLI schemes are pushing green manufacturing with energy-efficient technologies.
- Automakers are betting big on EVs and battery recycling.
India’s green transition is also a jobs story. According to IRENA, a net-zero pathway could create millions of jobs in renewable energy, energy efficiency, and sustainable manufacturing . However, coal-dependent states like Jharkhand and Chhattisgarh may see job losses. Transition planning must include reskilling programs and social protections to avoid uneven growth.
Strategic Priorities
For India to align growth with green goals, three structural priorities stand out:
- Central Coordination
A national body should oversee and assess all green initiatives, ensuring accountability across ministries and states. Without central coordination, targets risk fragmentation. - National Green Transition Fund
Redirecting revenue from carbon cess, coal taxes, and the Carbon Credit Trading Scheme into a dedicated transition fund can help finance decarbonisation and avoid double taxation in green policies. - Technology & Trade Partnerships
Accelerating technology acquisition through free trade agreements, especially for solar modules, batteries, and electrolyzers, can reduce import dependence. Tariff rationalisation over the next decade will be crucial.
The Road Ahead
India’s green growth agenda is bold, but optimism must be balanced with realism.
- Renewable expansion risks being stranded without grids.
- Coal jobs will decline, while new green jobs may differ in quality and geography.
- Green hydrogen at current costs remains $3–4/kg and needs subsidies to scale.
- International climate finance and long-term low-cost capital — estimated at $15–17 trillion by 2070 — will be essential.
Still, the direction is clear: green growth is not a slogan but a survival strategy. For India, balancing development with climate goals is about ensuring energy security, competitiveness, and global leadership. The real test lies in execution — turning policy ambition into grounded results.
