Why in the news?

Recently Budget 2025 was presented in the parliament with aim to become a developed nation by 2047 and achieve net zero emission by 2070.

Why does India need to balance economic growth and environmental sustainability to achieve Viksit Bharath 2047?

• Preventing Economic Slowdowns – Climate disasters (floods, droughts, heatwaves) threaten agriculture, manufacturing, and energy, potentially reducing India’s GDP by 2.8% by 2030.
• Overall, extreme heat could cut 2.5-4.5% from GDP by 2030, climbing to a 10 %  plunge by 2050.
• Labour Productivity - Labour productivity loss due to extreme heat could cost the economy $220 billion by 2030.
• Reducing Fossil Fuel Dependence – Coal (55-60% of power) raises costs, import reliance, and emissions.
• Energy Security - Over reliance on imported fossil fuels — 85 %  of crude oil and 50% of natural gas are imported — could leave the economy exposed to price volatility, and geopolitical and supply chain shocks.
• Renewables (solar, wind, hydro, hydrogen) ensure cheaper, stable, and self-sufficient energy.
• Energy security puts India in a stronger position to weather global shocks and to stand more firmly on the geopolitical stage.
• Job Creation & Green Economy – Green growth contributes to fast growth and can create jobs — 50 million new jobs in India by 2070 — according to the World Economic Forum’s Mission 2070 report.
• This translates to $1 trillion in additional economic value by 2030 and up to $15 trillion by 2070.
• Trade Benefits – High-carbon economies face trade restrictions such as EU’s Carbon Tax).
• Carbon cost penalties imposed by importers of Indian goods could cost $150 billion annually in export revenues by 2040 if industries are not decarbonised.
• Global Investments - Green policies attract funding from banks (World Bank, IMF), green bonds, and private investors.
• Public Health – Carbon-intensive industries cause air pollution, water contamination, and health issues.
  • Clean energy reduces health costs and boosts productivity.
• Meeting Climate Pledges – India’s net-zero by 2070 goal requires 50% emission reduction and 500 GW renewables by 2030, avoiding global pressure and trade risks.
• Long-Term Competitiveness – Investing in green hydrogen, EVs, and battery storage positions India as a global leader in future industries, ensuring sustainable economic growth.

What are the challenges persisting in India's efforts towards sustainable development?

• High Dependence on Fossil Fuels - 55-60% of power generation still depends on coal, with peak demand expected around 2035.
  • Import Dependence: Heavy reliance on oil & gas imports increases economic vulnerability.
• Slow Renewable Energy Expansion - Large-scale solar & wind projects face land acquisition and grid integration hurdles.
  • Intermittency - Renewable energy generation is weather-dependent, requiring better storage solutions.
• Industrial Carbon Intensity - Steel, cement, and manufacturing remain carbon-intensive due to outdated technologies.
  • Cost of Transition - Shifting to green technology requires heavy investments, discouraging MSMEs.
• Challenges in Electric Mobility -  EV adoption is hindered by a inadequacy of charging stations & battery recycling.
  • High Upfront Costs -  EVs remain expensive despite subsidies, limiting widespread adoption.
• Agricultural Sustainability Issues - Over-extraction of groundwater for irrigation threatens long-term agricultural productivity.
  • Methane Emissions - Livestock and mono scale paddy, wheat farming contributes significantly to greenhouse gases.
• Financial & Investment Barriers -  Green projects require significant upfront investments, limiting participation.
  • Limited Green Financing - Private investors remain hesitant due to uncertain returns and policy risks.

What are the steps India needs to take to achieve the balance?

• Clean Energy Transition - Renewable energy can be expanded by scaling up solar, wind, hydro, nuclear (500 GW by 2030).
  • Example- National Solar Mission
• Green Hydrogen Development – Investments can be made in production & storage for industries & transport.
  • Example - National Green Hydrogen Mission
• Decarbonize Industries - Sustainable manufacturing can be adopted to make cleaner processes, carbon capture, circular economy.
• Green Construction – Low-carbon materials can be used for energy-efficient buildings.
• Transport Electrification – Electric Vehicles and charging infrastructure can be expanded in public and private transport.
  • Example - Faster Adoption and Manufacturing of Electric Vehicles (FAME-II)
• Climate-Resilient Agriculture - Sustainable farming can be promote with precision farming, resilient crops, organic fertilizers, water conservation.
  • Example - National Mission for Sustainable Agriculture
• Green Investments - Green bonds can be expanded to attract more investments to the green economy.
• Guarantees can be obtained from multilateral development banks to encourage private sector players in key risky sectors, such as green hydrogen and grid modernisation.

Reference

Indian Express | Where Viksit Bharat meets green growth