India's Economic and Environmental Goals
India's GDP growth has recently slowed, affecting its aim to become a developed nation by 2047, referred to as "Viksit Bharat." Achieving this goal requires a consistent annual growth rate of over 8%. Simultaneously, India aims to attain net-zero emissions by 2070, necessitating significant near-term actions such as reducing emissions intensity by 50%, achieving 500 GW of renewable energy capacity, and investing approximately $290 billion in new wind and solar energy sources by 2030.
Intersection of Growth and Green Initiatives
- A joint research by The Fletcher School at Tufts University and Worley highlights the interconnectedness of economic growth and green initiatives.
- Green growth is crucial for sustaining fast economic growth due to its relevance in contemporary policy discussions, notably at the Raisina Dialogue 2025.
Challenges and Opportunities
- India's growth is currently reliant on carbon-intensive activities, with coal contributing 55-60% to power generation.
- Climate risks, such as the impact on agriculture and labor productivity due to extreme heat, could lead to a GDP loss of up to 4.5% by 2030 and 10% by 2050.
- Export revenue losses could amount to $150 billion annually by 2040 if industries remain non-decarbonized.
- Dependence on imported fossil fuels exposes the economy to price volatility and geopolitical risks.
Benefits of Green Growth
- Green growth can create 50 million new jobs in India by 2070, adding $1 trillion in economic value by 2030 and up to $15 trillion by 2070.
- It encourages innovation in manufacturing and technology, enhancing productivity and growth.
- Improving energy security strengthens India's global standing and resilience against economic shocks.
Strategies for Holistic Growth
- The 2025 Union Budget prioritizes both fast growth and green initiatives, including plans for 100 GW of nuclear capacity by 2047 and support for solar equipment and battery manufacturing.
- A comprehensive growth strategy should focus on:
- Building renewable energy capacity alongside investments in climate adaptation.
- Addressing demand-side challenges for farmers and MSMEs through sustainable technologies and financial tools like carbon pricing and green finance.
- Managing disruptions in sectors transitioning from high to low carbon intensity, including reskilling workers.
The Path Forward
A sustainable and faster-growing India requires a robust energy infrastructure, international collaborations, and innovative financing solutions such as green bonds and blended finance models. The renewables sector needs 3.7 million skilled workers by 2030, emphasizing the importance of skill development and international expertise. Achieving India's long-term goals of Viksit Bharat and net-zero emissions depends on prioritizing a healthier and greener nation in the near term.