The green path to $ 10 trillion economy

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The green path to $ 10 trillion economy

The green path to $ 10 trillion economy

Articles
Feb 14,24

In 2023, green manufacturing startups were able to attract more than $10 billion investment globally (with sectors like batteries, transportation, building and materials, and metal emerging as the most popular choices for investors), according to a Crunchbase report.

Many manufacturing industries, in general, are blamed for emitting copious quantities of carbon dioxide (CO2) during their production processes. Being energy-intensive by nature, the sector accounts nearly 40 per cent of India's total energy consumption and is one of the major sources of greenhouse gas emissions. Having said that, manufacturing needs to contribute more to the growth trajectory for India to achieve its aspirations of becoming a $10 trillion economy. With calls for reducing carbon footprint getting stronger across the world, the manufacturing sector’s role becomes crucial for India to achieve its sustainability goals.

The Central Pollution Control Board (CPCB) has identified 17 types of industries that contribute to pollution, with seven industries - including iron and steel, paper, copper and aluminium - have been recognised as major sources of pollutants (such as sulfur oxides and carbon dioxide emissions). There are various solutions to mitigate emissions. For example, carbon-capturing devices can be installed in diesel generators to effectively capture and reduce pollutant emissions. Similarly, adoption of renewable energy or electric vehicles can help in reducing carbon footprint. Industry 4.0 innovations (including automation and digitization) also promise cleaner, greener, and smarter production systems.

However, there are challenges hindering the widespread adoption of green solutions. Some of them are inadequate domestic supply, heavy dependence on imported materials, lack of mature supply chain, skilled workforce, high implementation costs, etc. Like in case of renewable energy, based on conservative estimates, more than 50 per cent of the project costs for each megawatt of solar PV power plant installation in India lead to the outflow of foreign exchange.

To overcoming these implementation challenges, joint efforts - from companies, policymakers, and technology innovators - are needed. Considering the fragmented nature of the Indian manufacturing ecosystem (where small and medium enterprises have a major presence), green technologies also need to be cost-efficient for their wider adoption.

At a time when experts are calling for transition to low carbon economy, the interim budget 2024 has laid thrust on sustainable growth with schemes for bio-manufacturing, bio-foundry, financial support for offshore wind projects, biomass machineries, expanding e-vehicle ecosystem, etc.

With India aiming to export goods worth $ 1 trillion by 2030, the manufacturing sector has to pull up its socks and work hard to gain competitive edge globally. As businesses recognise the importance of environment responsibility, one can anticipate a continued momentum towards sustainability in the Indian manufacturing sector in the coming years.

In this 52nd Annual Edition of IPF, industry leaders present their carbon-neutral strategies (spanning from R&D to manufacturing to supply chain & logistics) for developing India into a vibrant manufacturing hub of the world.

Happy reading!