Economic Growth and Environmental Sustainability For Viksit Bharath 2047
iasparliament
March 25, 2025
Main Syllabus: GS I – Climate Change, GS III – Indian Economy, Sustainable Development.
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.
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.
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.
