24 March 2025 : Indian Express Editorial Analysis

1. The green path to growth

(Source – Indian Express, Section – The Ideas Page – Page No. – 09)

India’s GDP Growth Slowdown and Long-Term Goals

• India, known as the world’s fastest-growing large economy, has witnessed a decline in its GDP growth rate over the last year.
• This slowdown not only affects the immediate economic outlook but also pushes back the long-term goal of achieving “Viksit Bharat”—transforming India into a developed nation by 2047.
• To stay on track, India needs to sustain an annual GDP growth rate of over 8 per cent.
• However, alongside this economic target, the country must also focus on green growth, which is crucial for sustainable development.

Balancing Economic Growth with Net-Zero Emissions

• India has committed to achieving net-zero emissions by 2070, a goal that requires substantial progress in the near term.
• By 2030, the country aims to reduce emissions intensity by 50 per cent, develop 500 GW of renewable energy capacity, and secure nearly $290 billion in investments for solar and wind energy.
• Experts highlight that India’s economic and environmental ambitions are deeply interconnected.
• The 2025 Raisina Dialogue has further underscored the significance of integrating these two priorities in policy discussions.

The Interdependence of Green Growth and Economic Growth

• At first glance, green growth and fast economic growth seem to conflict, as India’s current economic expansion heavily relies on carbon-intensive industries.
• The recent economic slowdown can be partly attributed to declining growth in emissions-intensive manufacturing.
• With coal generating 55-60 per cent of India’s power and demand projected to peak only around 2030-2035, shifting to greener alternatives poses challenges.
• However, ignoring green growth could threaten economic stability. Climate risks could reduce India’s GDP by 2.8 per cent by 2030 due to agricultural losses, while extreme heat may cost the economy $220 billion by the same year.
• Additionally, by 2040, carbon cost penalties on Indian exports could amount to $150 billion annually if industries fail to decarbonise.
• Dependence on imported fossil fuels—85 percent of crude oil and 50 percent of natural gas—is another vulnerability, exposing the economy to price volatility and geopolitical risks.

Green Growth as an Economic Opportunity

• Rather than hindering economic progress, green growth can serve as a catalyst for job creation and innovation.
• The World Economic Forum’s Mission 2070 report estimates that India could generate 50 million new jobs through green initiatives by 2070, contributing $1 trillion in additional economic value by 2030 and up to $15 trillion by 2070.
• Green growth fosters technological advancements, enhances productivity, improves public health, and strengthens energy security.
• These factors collectively position India more favorably in the global economic and geopolitical landscape.

A Holistic Strategy for Fast and Green Growth

The 2025 Union Budget reflects India’s commitment to both economic and environmental goals, with major green initiatives such as the development of 100 GW of nuclear capacity by 2047 and support for solar equipment manufacturing. However, a more comprehensive strategy is required across three key dimensions:

1. Strengthening Renewable Infrastructure – India must invest in renewable energy capacity while ensuring supporting infrastructure, such as energy storage, grid transmission, carbon capture, and public-private partnerships, is in place.
   
   
2. Addressing Demand-Side Challenges – Farmers and micro, small, and medium enterprises (MSMEs), which form a significant portion of the workforce and economy, need access to affordable, sustainable technologies, financing, and infrastructure. Tools like carbon pricing and green finance schemes can aid in this transition.
   
   
3. Managing Economic Disruptions – Shifting to green growth may cause short-term disruptions in certain industries. Sectors reliant on coal need assistance in reskilling workers and restructuring economies, potentially through subsidies funded by industries benefiting from green transitions.
   
   

A Greener and Faster-Growing India is Possible

• Achieving the twin goals of economic expansion and sustainability is an enormous challenge, requiring India to collaborate with international players in technology, skill development, and financing.
• Innovations in green hydrogen, grid modernisation, critical minerals, battery technology, and carbon capture are key areas for investment.
• Financial strategies, such as green bonds and blended finance models, can mobilise resources from multilateral development banks and private sector investors.
• Furthermore, building human capital is essential. The renewable energy sector alone will require 3.7 million skilled workers by 2030.
• Effective training and re-skilling programs can ensure India is prepared for the transition.
• Ultimately, the research is clear: to achieve its ambitious 2047 and 2070 targets, India must prioritise green growth as a foundation for sustained economic progress.
• By doing so, a healthier, more resilient, and faster-growing India is well within reach.

Conclusion

• While fast GDP growth is essential for achieving Viksit Bharat 2047, neglecting green growth could derail long-term progress.
• A well-planned transition to a low-carbon economy can create jobs, enhance energy security, and strengthen India’s global position.
• To achieve both fast and green growth, India must invest in renewable infrastructure, support industries and workers in transitioning, and leverage international collaborations.
• A sustainable and resilient economy is not just desirable but necessary for India’s long-term prosperity.

Check this out 22 March 2025 : Indian Express Editorial Analysis