The coming decades will be a defining period for India, a time when the world’s most populous nation aims to achieve developed economy status while simultaneously navigating one of the most ambitious climate commitments globally. This dual aspiration of rapid development and decarbonisation is no longer an either or conversation. It is the challenge and opportunity of our times.
Prime Minister (PM) Narendra Modi announced at the COP26 in November 2021 that India will achieve carbon neutrality by 2070. Since 2023, the PM’s vision for Viksit Bharat @ 2047, India’s centenary year of Independence, has underpinned all government programmes and policies. The years ahead of us will have to be characterised by rapid innovations that enable India to meet its commitments and fulfil its aspirations. This journey calls for deep transformation, especially from industries that form the backbone of the economy.
Industry accounts for a substantial share of the country’s greenhouse gas (GHG) emissions. Yet, it is also the engine of job creation, innovation, and global competitiveness. Therefore, the sector must walk a fine line, one that accelerates growth while sharply reducing environmental impact. This is not just about regulatory compliance or risk mitigation. It’s about future-proofing operations, strengthening investor confidence, and aligning with the evolving priorities of consumers, communities, and capital markets.
Sectors such as manufacturing, heavy industries, and raw materials, many of which have traditionally been energy-intensive, must now lead the shift toward cleaner technologies, energy efficiency, and greener production models. As the world reconfigures its economic order in response to climate and geopolitical shifts, India has a chance to leapfrog with the right mix of policy support, investment, and industrial vision.
There is no denying that fossil fuels will continue to play a role in the short-term, given India’s developmental stage and energy needs.
However, the pivot toward a low-carbon economy is already underway. From internal carbon pricing mechanisms and renewable energy integration to innovation in circularity and water efficiency, many Indian businesses are adopting forward-looking practices. These shifts, while initially capital-intensive, offer long-term strategic advantages, including better resilience, cost savings, and reputational gains.
Environmental, social, and governance (ESG) principles have become key indicators of a company’s overall health, long-term vision, and commitment to responsible business. Investors, both in India and globally, are showing a clear preference for companies that demonstrate strong sustainability practices. As a result, transparent and comprehensive ESG disclosures are no longer optional. They are essential for attracting investment and building credibility in the market. Recognising this, many industry leaders are accelerating efforts to develop climate-resilient technologies. Investing in such innovations not only helps mitigate risks associated with climate change but also strengthens business continuity and long-term value creation.
But this transition isn’t just about climate action; it’s about redefining value creation. Industrial growth in India must now be measured not only by output but also by outcomes—for the environment, for communities, and for the economy at large.
Our response to this moment will shape India’s legacy. It is encouraging to see a growing number of corporates investing in climate-resilient infrastructure, low-emission technologies, and sustainable supply chains. These are not just environmental imperatives; they are business imperatives.
India is well-placed to become a global hub for sustainable industrial innovation, thanks to our culture of frugal engineering, a vibrant startup ecosystem, and the scale to pilot and replicate impactful solutions. The need of the hour is a synchronised effort where government, industry, and civil society work together to enable a just and inclusive green transition.
In a world grappling with inflationary pressures, trade uncertainties, and extreme weather events, resilience will be the new competitive edge. Companies that integrate sustainability at the core of their strategy will not only navigate turbulence better but also emerge as leaders in the evolving global economy.
The transition to net-zero is not a race against each other; it’s a race against time. Industry must rise to the moment, not by reacting to policy, but by anticipating it, and in many cases, moving ahead of it. The question is not whether we can afford to act. The question is whether we can afford not to.
As the pathway toward net zero evolves, leadership will be defined by those who adapt fast and convert challenges into opportunities for all. This is not the time to play catch up to government policy. The industry must make a synchronised effort to rise up to the challenge of a changing climate amid a shifting global economic order where India is emerging as a leader.
This article is authored by RS Jalan, managing director, GHCL, New Delhi.
