India is poised to become a global manufacturing powerhouse, driven by the transformative ‘Make in India’ initiative launched in 2014. This program has spurred industrial growth at both regional and national levels, fostering a robust ecosystem for domestic and international manufacturing investments. Despite global economic disruptions triggered by the pandemic and exacerbated by the recent geopolitical events, the manufacturing sector has demonstrated resilience, growing at around 11 per cent p.a. As a key indicator of development, the sector plays a significant role in addressing challenges like carbon emissions, resource depletion and waste generation, paving the way for a more sustainable future. Integrating sustainability into the ‘Make in India’ framework is essential for long-term economic growth and holistic development. 

The sustainability imperative

While India’s manufacturing sector contributes 17 per cent to the GDP and employs over 27 million people, it also accounts for 20 per cent of the country's greenhouse gas emissions. Implementing a green lens in manufacturing can help India improve these statistics and gain a multitude of benefits. By using resources optimally and transforming traditional manufacturing operations, the 'Make in India' initiative can advance the emergence of a more sustainable manufacturing landscape. 

The global economy has been veering toward sustainable business practices for years. Today, sustainability is a primary consideration for investments at an individual and larger scale. A recent nationwide survey stated that 60 per cent of consumers prioritise sustainable and environmentally friendly products and services. This aligns with the global trend of green investments and sustainable practices, where businesses are implementing green policies to show tangible progress to their employees and investors. 

Positioning the ‘Make in India’ initiative as an environmentally responsible endeavour with tangible on-ground implementation can attract global market interest and broaden access. Additionally, this can boost competition in the innovation space, where India is rapidly advancing in the development of cutting-edge green technologies, such as carbon capture and storage, electric vehicles (EVs), ethanol blending, biomass energy, railway electrification, advanced battery storage technologies and green hydrogen. 

The most significant advantage of developing a sustainable manufacturing industry is its transformative impact on India and its people, protecting and preserving our natural resources. By embracing greener practices, we can address water and land shortages, pollution and displacement, leading to a healthier and more harmonious environment. Sustainable manufacturing promises to revitalise our rivers, lakes and lands while enhancing the well-being of our communities. 

Embracing a Circular Economy for Sustainable Manufacturing

Starting a green manufacturing revolution doesn’t require reinventing the wheel; it’s about upgrading existing approaches. The key step is to retrofit current systems with a circular economy mindset, emphasising ‘repair, reuse and recycle’ to reduce pressure on resources and minimise waste. This approach would entail initiatives such as product design for disassembly, extended producer responsibility, and robust recycling infrastructure. It will also lower production costs and boost infrastructure growth by supporting recycling. 

While countries such as Japan and Finland have heavily adopted the circular economy approach, India is progressively advancing in this direction. This approach benefits regional manufacturing industries, enabling them to adopt sustainable practices on a medium to small scale. Moreover, a return to renewable resources is indispensable for a sustainable manufacturing industry. Processes powered by solar, wind and other renewable energy sources can drastically cut carbon emissions. Investing in these will make them more accessible for industrial use, creating more employment and business opportunities. India’s renewable energy capacity reached 173 GW in 2023, with the government targeting 500 GW by 2030. Creating and encouraging alternative supply chains that minimise environmental impact, from raw material sourcing to distribution, is essential for a sustainable industry. Given India’s vast and varied population and land cover, sustainable supply chains can give the industry the right impetus it needs to become environmentally conscious. 

Unequivocally, transitioning to sustainability comes with barriers like high initial costs, lack of awareness and inadequate infrastructure. However, it offers several advantages. For instance, switching to solar energy can drastically cut electricity costs. Renewable energy sources can help manufacturers reduce dependency on grid power and limit service disruptions. At COP29, India and other countries underlined the need for increased global investment in developing economies to help them reach their sustainability goals. 

There is a critical need for improved infrastructure for recycling, renewable energy and building low-waste industrial areas. Government and industry can collaborate through subsidies, green technology investments, tax exemptions and sustainability studies. Initiatives like the National Solar Mission and 100 per cent Foreign Direct Investment (FDI) for renewable energy projects will aid in scaling adoption. The Government has also waived Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power projects expected to be commissioned by June 30, 2025. Government policies and incentives, along with a skilled workforce and favourable infrastructure, are contributing to the emergence of sustainable regional manufacturing hubs in India. India has an opportunity to claim its spot as a green manufacturing destination. However, strict environmental regulations and standards will be integral to their success.

A greener future

By integrating sustainability into the core of ‘Make in India’, we can ensure that India's industrial resurgence is both economically prosperous and environmentally responsible. It can improve its global competitiveness, attract investments and contribute to national and global environmental goals. COP29 highlighted the importance of increased investment to support economies in their journey toward achieving net-zero goals. The journey will require concerted efforts from the government, industry leaders and the public. As leaders in the manufacturing sector, it is our responsibility to champion this transformation, ensuring that ‘Make in India’ evolves into ‘Make in India Sustainably’.

About the author: 

Ashish Aggarwal has been serving as the Chief Administrative Officer at Cummins India since December 2022. In this role, he oversees Government Relations, Communications, Facilities, Security and Corporate Responsibility. Ashish provides strategic leadership and guidance to these functions, ensuring they align with Cummins India’s organisational objectives in the region. Ashish brings over 25 years of extensive experience across various functions, including Corporate and Government Relations, Project Management, Business Development and Corporate Social Responsibility. Before joining Cummins, he served as the Country Director for Koch Industries, where he led policy and strategy for all Koch companies in India, and government policy for Koch companies in the ASEAN region, including Malaysia, Vietnam and the Philippines. He previously worked with Cummins India from 2011 to 2018, serving as the Vice President for Government and Public Policy.

Blurb: Initiatives like the National Solar Mission and 100 per cent Foreign Direct Investment (FDI) for renewable energy projects will aid in scaling adoption.

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