For Green Transition, India Can Fall Back on Itself

  • December 03, 2025
  • Economy

Indian Express

For Green Transition, India Can Fall Back on Itself

1. Key Arguments Presented in the Article

A. India’s Green Transition Requires Massive Investment

  • To meet its Paris Agreement targets, India requires around $800 billion by 2030 for decarbonisation.
  • However, international green finance has been unreliable and often slow.
  • India cannot depend on inconsistent multilateral climate funds or Western commitments.

B. Domestic Capabilities Are Strong Enough

The authors argue that India already possesses a robust domestic base to drive its own green transition:

  1. Manufacturing strength in solar modules, wind equipment, and increasingly in battery storage.
  2. A young, expanding workforce capable of absorbing and producing green technologies.
  3. Large domestic market for renewable energy, electric vehicles, and green hydrogen.

C. India’s Economic Structure Supports Green Growth

  • India’s economy is shifting towards services, which are less carbon-intensive than manufacturing-heavy economies such as China.
  • The transition provides space for green tech adoption without sacrificing growth.

D. Private Sector Financing Is Available

  • Domestic private capital is abundant but awaits stable regulatory frameworks and predictable policy pathways.
  • The authors claim India does not lack capital; it lacks regulatory clarity to unlock investment.

E. India Must Focus on Self-Reliance

  • Relying on domestic supply chains reduces vulnerability to geopolitical risks.
  • AATMANIRBHAR Bharat can integrate with global markets while reducing green technology imports.

2. Author’s Stance

The authors adopt a strong pro-India, optimistic, and self-reliant stance.
They argue India:

  • Should not depend on foreign climate financing,
  • Has the internal economic strength and manufacturing ecosystem,
  • Must focus on consistent policies and domestic innovation.

The tone is assertive and confidence-building.

3. Biases Present in the Article

A. Over-optimism on Domestic Capability

The article may underestimate:

  • The scale of technological dependence on global supply chains (e.g., electrolyzers, high-end solar wafers).
  • Financial risks in private sector-driven investments.

B. Underplaying International Climate Finance

While unreliable, global finance still plays an important role for:

  • Risk-sharing,
  • Cheaper loans,
  • Climate resilience in vulnerable sectors.

C. Limited discussion on social or ecological concerns

The argument focuses more on economic and industrial capabilities, less on:

  • Land conflicts,
  • Displacement,
  • Ecological degradation from RE projects.

4. Pros and Cons of the Arguments

Pros

  • Emphasises India's rising manufacturing strength.
  • Recognises unreliable international finance dynamics.
  • Highlights the importance of domestic financial markets.
  • Accurately presents India’s services-led growth structure as an advantage.
  • Reinforces policy stability as key to unlocking private investment.

Cons

  • Assumes domestic capital will automatically flow if regulations improve.
  • Does not fully address gaps in advanced green technologies.
  • Overlooks challenges in grid integration and storage needs.
  • Insufficient attention to behaviour change, social acceptance, and ecological costs.
  • Limited engagement with issues of federal coordination for RE projects (land, water use, transmission lines).

5. Policy Implications

A. Energy Policy

  • Need for consistent long-term regulations to attract domestic investment.
  • Investments in grid modernisation and storage infrastructure.
  • Reduced dependence on imported solar modules and battery components.

B. Climate Finance

  • India should develop domestic green bonds, sovereign green funds, and blended finance models.
  • Strengthen regulatory agencies to derisk private sector investments.

C. Industrial Policy

  • Emphasis on scaling domestic production under schemes like PLI.
  • Promotion of green hydrogen and electrolysers manufacturing.

D. Foreign Policy

  • India can negotiate from a position of strength if not overly dependent on climate finance.

E. Employment and Social Sector

  • Potential for green jobs in manufacturing and services, but requires upskilling and workforce planning.

6. Real-World Impact

Positive

  • Greater economic resilience if India reduces reliance on external finance.
  • Faster rollout of renewable energy projects.
  • Boost to domestic industries and Make in India.
  • Increased energy security as fossil imports decline.

Negative

  • Over-reliance on domestic capital may strain public finances.
  • Risk of regional disparities in RE infrastructure growth.
  • Land conflicts could rise without proper environmental safeguards.
  • Potential technological lag without strong global collaborations.

7. Alignment with UPSC GS Papers

GS Paper 2

  • Government policies on renewable energy
  • Climate change negotiations
  • International climate finance

GS Paper 3

  • Environment and Climate Change
  • Renewable energy transition
  • Infrastructure and investment
  • Indian economy and self-reliance

GS Paper 1

  • Geographical impact of energy transitions
  • Demographic dividend and workforce readiness

Essay Paper

  • “Self-reliance in a globalised world”
  • “Green development pathways for emerging economies”

8. Balanced Summary

The article argues convincingly that India must rely on its own economic strengths—manufacturing capacity, growing workforce, strong private capital markets, and service-sector dominance—to drive its green transition. Given the unreliability of international climate finance and geopolitical uncertainties, the authors believe India can accelerate decarbonisation using domestic capabilities.

However, the analysis leans optimistic and simplifies challenges like advanced technology dependence, land constraints, infrastructural gaps, and the need for robust ecological safeguards. Domestic capital alone may not be sufficient without major regulatory, institutional, and technological reforms.

Overall, the article presents a persuasive but incomplete roadmap that must be supplemented by international cooperation, strong environmental governance, and equitable growth strategies.

9. Future Perspectives

  1. Create a National Green Transition Fund to pool sovereign and private capital.
  2. Accelerate innovation in electrolysers, battery tech, and offshore wind.
  3. Establish regulatory predictability through long-term renewable energy roadmaps.
  4. Strengthen India’s role in global green supply chains, not just domestic ones.
  5. Balance environmental protection with rapid RE expansion through transparent EIAs.
  6. Enhance grid infrastructure to manage intermittency.
  7. Promote skilling programs for green jobs—EV, hydrogen, solar manufacturing.