India is seeking to establish itself as a pioneer for the Global South in the transition towards sustainability, aligning its broader development strategy with climate-conscious growth as part of its Viksit Bharat vision for 2047.
The country has already taken steps such as setting up the International Solar Alliance and achieving 50 per cent of its installed electric power capacity from non-fossil fuel sources, while also looking to leverage sectors including semiconductors, AI data centres and pharmaceuticals to support this shift. A research paper by the Council for Energy, Environment and Water (CEEW) underscores that adopting a green economy model is critical to advancing this transition and identifies 36 emerging green value chains spread across energy transition, circular economy, bioeconomy and nature-based solutions, collectively outlining a new economic frontier for India.
According to the report, the development of a green economy has the potential to unlock a market value of USD 1.1 trillion, generate employment for 48 million people and attract investments amounting to USD 4.1 trillion. The paper notes that realising this opportunity will depend heavily on capital-intensive sectors such as renewable energy manufacturing and generation, electric vehicle manufacturing, energy storage and green hydrogen production, all of which are seen as central to reshaping how India produces energy, uses materials, manages waste and harnesses its natural resources.
Despite the scale of opportunity, the report also highlights several structural challenges that could slow down implementation. High capital expenditure requirements, elevated financing costs and limited economies of scale are making early-stage green alternatives less competitive in the market. Supply chain bottlenecks are constraining manufacturing capacity, while limited research and development, insufficient investment in green technologies and a shortage of skilled workers in the sector further complicate the transition process.
To overcome these barriers, the report advocates what it describes as a ‘whole’ approach encompassing the entire economy, government and country. It suggests that green economic expansion must be integrated into economic planning at every level, from national and state administrations down to districts and gram panchayats, and across all ministries. The approach calls for coordinated participation from a wide range of economic actors, including multinational corporations, farmer-producer organisations, cooperatives, small and medium enterprises, large industries and self-help groups, in order to embed sustainability into mainstream economic activity.
The report emphasises that making the green economy people-centric is essential for ensuring broad-based participation and fostering a sense of ownership across communities and industries. It argues that such inclusive engagement would help drive India’s transformation into an economy that is both environmentally resilient and economically robust, reinforcing the country’s long-term sustainability goals while supporting growth and development.
