India Green Growth may Drive Massive Jobs and Investment

India Green Growth may Drive Massive Jobs and Investment

Why in News?

A recent Council on Energy, Environment and Water (CEEW) study highlights that India’s green growth trajectory could reshape its economic landscape, unlocking $4.1 trillion in cumulative green investments and generating nearly 48 million full-time equivalent jobs by 2047. 

Highlights of the CEEW Study on India’s Green Growth

• The study finds that India can attract USD 4.1 trillion in cumulative green investments by 2047. The study projects creation of 48 million full-time equivalent jobs by the same year. 
• The analysis estimates an annual green market worth USD 1.1 trillion in 2047. The figure covers goods and services across energy transition, circular economy and bioeconomy. The estimate shows the scale of future demand for low carbon products.
• Most investment needs sit in the energy transition. The study quantifies about USD 3.79 trillion for clean energy and related infrastructure through 2047. The capital heavy nature of power, storage and mobility drives this share.
• The report forecasts 16.6 million FTE jobs in the energy transition by 2047. The bioeconomy and nature-based sectors could support roughly 23 million FTE jobs. The circular economy value chains could add over 8 million FTE jobs. These totals add to the 48 million figure. 
• The research maps 36 green value chains. The chains include solar manufacturing, electric vehicle assembly, waste recycling, bio-based materials, sustainable tourism and afforestation projects. 
• The study finds that green investments can create jobs in both urban and rural areas. Rural value chains like agroforestry and biofibres can boost farm incomes. Urban value chains like EV manufacturing can create factory and service jobs. The circular economy presents jobs in waste collection repair remanufacturing and material recovery.

India’s Green Growth Vision: Policy Foundations

• Net Zero Emission by 2070: The Government of India announced Net Zero Emissions Target by 2070 at COP26 in November 2021. The Prime Minister framed the pledge as a long term ambition for decarbonisation. The pledge guides new policy design across ministries and states and raised the global profile of India’s climate commitments. 

• Nationally Determined Contribution (NDC): India updated its NDC in August 2022. The update tightened the emissions intensity goal to a 45 percent reduction from 2005 levels by 2030. The NDC also set a target of about 50 percent cumulative electric power capacity from non-fossil sources by 2030.

• Renewable Energy Push: The Government adopted a target of 500 GW non fossil capacity by 2030. The power ministry formalised the target and supporting actions in 2023 and links to large scale solar and wind programs and to transmission planning. The target drives investment needs in generation and grid infrastructure.

• Solar Mission: India launched the Jawaharlal Nehru National Solar Mission in 2010. The mission created policy tools for scale up of solar manufacturing and project deployment and set early targets and guided state level auctions. The mission remains a cornerstone of India’s clean energy expansion.

• Green Hydrogen: The Union Cabinet approved the National Green Hydrogen Mission in January 2023. The mission set a target of 5 million tonnes per annum of green hydrogen by 2030. The mission includes support for electrolyser manufacture and for supply chain infrastructure and aims to make India a global producer and exporter of green hydrogen.

• Finance & Investment: The government opened 100 percent foreign direct investment for renewable projects under the automatic route. The policy encourages private capital in generation and in manufacturing. Independent estimates show multibillion dollar investment needs through the 2030s for generation and grid.

India’s Future Powered Clean Energy Shift

• India is shifting from fossil fuels to cleaner energy. The shift spans renewables, storage, hydrogen, and electrification. The change aims to cut emissions and improve energy security. 
• India added large solar and wind capacity after 2015. The country crossed 200 GW of renewable capacity in 2024. The government invited large auction tranches from 2023 to 2028 to add capacity quickly. The expansion focuses on utility scale and distributed solar. 
• The government launched a PLI scheme for solar PV modules in 2021. The scheme aims to build GW scale module factories in India. The scheme intends to reduce module imports and support domestic jobs.
• The government approved an Advanced Chemistry Cell (ACC) battery programme in 2021. The scheme aims to develop giga scale battery factories. The policy sees batteries as essential for grid flexibility and for electric vehicles. The central agencies estimate large battery needs by the early 2030s. 
• The government pushed electric mobility through purchase incentives and local manufacturing rules. The policy supports two wheeler and three wheeler electrification first. The move reduces oil imports and urban pollution.
• The ministries and industry started skill programmes after 2020. The programmes focus on solar technicians, EV technicians, electrolyser operators and storage technicians aimed to convert existing workers into green sector staff.

Environmental, Economic & Climate Benefits

• Environmental Degradation: Green growth can reduce damage to air, water, soil and ecosystems across India. The cost of environmental degradation in India has been estimated to be about 5.7% of GDP annually under business-as-usual. By shifting to greener energy and sustainable practices, India can shrink that cost significantly. This shift protects forests, wildlife, rivers and agricultural land.

• Public Health: Moving away from fossil-fuel based power and heavy pollution reduces harmful emissions. Renewable energy produces far less pollution than coal and other fossil fuels. These changes cut airborne pollutants and lower respiratory and cardiovascular illnesses. Better air quality also reduces medical bills and improves quality of life for many families.

• Energy Security: Green growth strengthens India’s energy independence. By using solar, wind, hydro, and other clean sources, India reduces reliance on imported fossil fuels. This reduces vulnerability to global price swings and supply disruptions. Strong domestic renewable generation also cushions the economy against volatile international energy markets. This makes India more resilient.

• Economic Savings: Green technologies often use resources more efficiently than conventional processes. Renewable power plants typically require far less water than thermal power stations. Efficient resource use lowers production and operational costs over time. This allows the economy to grow without sacrificing natural capital.

• Job Creation: Scaling up green value chains opens up new job opportunities. Green-economy could attract large-scale green investments and create millions of jobs. These jobs range across sectors such as clean energy generation, sustainable agriculture, waste recycling, and eco-friendly manufacturing, spanning rural and urban areas. 

• Climate Mitigation: By scaling up renewables and cutting reliance on fossil fuels, India reduces greenhouse gas emissions significantly over time. Studies link renewable adoption to lower carbon emissions compared to fossil-fuel dominated growth. Lower emissions slow down global warming. This helps India align with global climate change mitigation efforts. 

Challenges to Achieve Green Growth

• Weak Supply Chains: India relies heavily on imports for many critical minerals needed in renewable energy technologies, such as lithium, cobalt, nickel, and rare‑earth materials. The domestic mining and processing infrastructure remains underdeveloped. This dependency exposes green‑energy plans to global supply chain disruptions and price fluctuations.

• Inadequate Grid Infrastructure: India’s electricity grid lacks sufficient infrastructure to absorb large and variable inflows of renewable power. The transmission and evacuation network for renewable-rich regions often faces delays or capacity constraints. The energy storage capacity in the country remains far below what is needed.

• Institutional barriers: The cost of financing clean energy remains high in India compared to global peers. Many state‑owned power distribution companies (DISCOMs) are financially stressed. This distress discourages them from signing long‑term power purchase agreements (PPAs) with renewable developers. The uncertainty over off‑take and payments makes investors wary.

• Land Acquisition Issues: Large‑scale renewable installations often need extensive land. Solar farms may need 4–5 acres per MW and wind farms need varying acreage depending on the site. In many states land ownership is fragmented and titles remain unclear. Local communities sometimes resist large projects, fearing loss of farmland, livelihoods or ecological disruption.

• Slow Domestic Manufacturing: India’s share of domestic manufacturing for solar modules, batteries, and related green equipment remains limited. The country has not yet built a robust, end-to-end supply chain that covers mineral extraction, component manufacturing, and assembly. Limited investment in research and development slows down innovation in storage, electrolysers, and other green tech.

Way Forward 

India’s green growth requires a holistic approach combining policy, finance, technology, and human capital. The government must provide clear and predictable policies to attract long‑term investments in renewables, green hydrogen, electric mobility, and the circular economy. Strengthening domestic manufacturing of critical components like solar modules, batteries, and electrolysers will reduce import dependence and create high-quality jobs. Expanding grid infrastructure and energy storage capacity is essential to integrate variable renewables reliably. Financial instruments such as green bonds, blended finance, and public-private partnerships can lower project risks and mobilize capital at scale. Investment in R&D and innovation is critical to advance low-cost technologies and improve efficiency in solar, wind, hydrogen, and circular processes.