Growth meets green: How India is building a climate strategy without slowing development

For much of the developing world, economic growth and climate action have often been presented as competing priorities. India is increasingly attempting to demonstrate that the two can advance together.
September 28, 2026 | 07:00
Growth meets green: How India is building a climate strategy without slowing development

Its development requirements remain substantial, yet its policy direction increasingly reflects an effort to align economic expansion with environmental sustainability.

Over the past decade, India has steadily expanded its climate framework through a combination of renewable energy investments, emissions-intensity reduction, adaptation strategies, green industrial policies, and large-scale domestic initiatives.

Rather than treating climate action solely as an international obligation, the country has integrated it into broader national priorities such as energy security, infrastructure development, manufacturing growth, employment generation and technological innovation.

This evolving strategy is grounded in India's National Action Plan on Climate Change (NAPCC), reinforced through successive Nationally Determined Contributions (NDCs) under the Paris Agreement, and supported by domestic programmes that accelerate the clean energy transition while sustaining economic momentum.

National Action Plan provides strategic foundation

India's climate policy architecture traces its institutional roots to the National Action Plan on Climate Change, launched in 2008.

The framework introduced eight National Missions covering renewable energy, enhanced energy efficiency, sustainable habitat, water conservation, sustainable agriculture, Himalayan ecosystem protection, Green India and strategic knowledge for climate change.

Over time, these missions have evolved into practical policy instruments that guide investments across multiple sectors.

The National Solar Mission, for instance, has become one of the most visible pillars of India's clean energy transformation, while the Perform, Achieve and Trade (PAT) scheme has encouraged greater industrial energy efficiency across energy-intensive sectors.

The broader objective of the NAPCC has remained consistent: integrating climate resilience into national development planning rather than treating environmental protection as a standalone objective.

This approach reflects India's long-standing emphasis on sustainable development while recognising its developmental priorities.

Updated climate commitments signal higher ambition

The revised targets include reducing the emissions intensity of GDP by 45 percent from 2005 levels by 2030 and ensuring that around 50 percent of installed electric power capacity comes from non-fossil fuel-based energy resources by the end of the decade.

Government data released through the Ministry of Environment, Forest and Climate Change indicate that India has already achieved several climate milestones ahead of schedule.

It focuses on accelerating renewable energy deployment, strengthening domestic carbon sinks through forest expansion, improving climate resilience, promoting cleaner industrial systems and deepening low-carbon technologies across sectors.

These developments demonstrate how India's climate agenda continues to evolve alongside its economic transformation.

Renewable energy becomes the centrepiece

Renewable energy has emerged as the defining feature of India's climate strategy. During the past decade, the country has transformed itself into one of the world's fastest-growing renewable energy markets, driven by large-scale investments in solar, wind and hybrid power generation.

According to the Ministry of New and Renewable Energy, India's installed non-fossil electricity capacity has expanded rapidly, supported by ambitious national targets and extensive private-sector participation.

Solar parks, rooftop solar programmes, floating solar projects and offshore wind initiatives have all contributed to expanding clean electricity generation.

Government initiatives such as the PM Surya Ghar Muft Bijli Yojana, solar manufacturing incentives under the Production Linked Incentive (PLI) scheme and the National Green Hydrogen Mission further demonstrate how renewable energy is increasingly being integrated with industrial development, energy security and technological advancement.

The transition extends beyond electricity generation. Renewable energy is now becoming closely linked with manufacturing, green mobility, hydrogen production and export opportunities, reinforcing India's broader vision of combining climate ambition with economic growth.

Green hydrogen opens a new industrial chapter

Alongside renewable electricity, green hydrogen has become a major pillar of India's long-term climate strategy.

The National Green Hydrogen Mission seeks to position India as a global production and export hub for green hydrogen and its derivatives by encouraging domestic manufacturing, innovation and large-scale deployment across industries.

The mission is expected to support decarbonisation in hard-to-abate sectors such as steel, fertilisers, refineries, shipping and heavy transport.

Government estimates indicate that the initiative could significantly reduce dependence on imported fossil fuels while attracting substantial private investment and creating new employment opportunities across the clean energy value chain.

Production-linked incentives for electrolyser manufacturing, investments in green hydrogen hubs and pilot projects for hydrogen-powered mobility illustrate how climate policy is increasingly linked with industrial competitiveness.

The recent inauguration of India's first hydrogen-powered train further reflects the country's effort to integrate clean technologies into mainstream transport infrastructure.

Energy efficiency continues to deliver climate gains

India's climate progress is not limited to expanding renewable energy. Improvements in energy efficiency have also contributed significantly to reducing emissions while supporting economic growth.

Programmes implemented by the Bureau of Energy Efficiency have helped industries, commercial buildings and households lower energy consumption through market-based mechanisms, appliance standards and efficient technologies.

The Perform, Achieve and Trade (PAT) scheme has encouraged industries to improve energy productivity, while the Standards and Labelling Programme has enabled consumers to adopt more energy-efficient appliances.

The widespread adoption of LED lighting under the UJALA programme represents one of the world's largest energy-efficiency initiatives.

According to official estimates, the programme has generated substantial electricity savings while reducing carbon dioxide emissions and lowering household electricity costs.

Together, renewable energy expansion and energy efficiency improvements have strengthened India's ability to pursue economic growth with lower emissions intensity.

Domestic climate measures extend beyond power sector

India's climate strategy increasingly encompasses agriculture, transport, urban development and natural ecosystems.

Programmes promoting electric mobility, biofuels, sustainable urban planning and climate-resilient agriculture have expanded the scope of domestic climate action beyond electricity generation.

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) programme and complementary state-level policies have accelerated the adoption of electric buses, two-wheelers and passenger vehicles.

Simultaneously, the expansion of metro rail systems, dedicated freight corridors and railway electrification contributes to reducing emissions from the transport sector.

Afforestation programmes under the Green India Mission and various state initiatives continue to strengthen forest cover and carbon sequestration.

India's commitment to creating an additional carbon sink of 2.5 to 3 billion tonnes of carbon dioxide equivalent through forests and tree cover remains an important element of its long-term climate strategy.

At the same time, initiatives such as Mission LiFE (Lifestyle for Environment) encourage sustainable consumption patterns by promoting behavioural changes in energy use, waste management and resource conservation.

By linking individual actions with national climate goals, the initiative expands climate action beyond government programmes and industrial policies.

Climate finance and carbon markets enter a new phase

India has also begun strengthening the financial architecture needed to support its climate transition. The government has introduced the Indian Carbon Market framework to encourage emissions reduction through market-based mechanisms while promoting investments in cleaner technologies.

Green finance is emerging as another important pillar. Sovereign Green Bonds, launched to finance environmentally sustainable infrastructure, have opened additional avenues for climate-focused investments.

Public and private financial institutions are increasingly supporting renewable energy, electric mobility, green buildings and sustainable infrastructure projects.

These measures complement broader industrial policies such as the Production Linked Incentive schemes, which encourage domestic manufacturing of solar modules, advanced batteries and other clean technologies.

The convergence of industrial policy and climate policy reflects India's effort to build long-term economic competitiveness through green growth.

Climate leadership through development

India's climate narrative has also acquired greater international visibility. During successive global climate summits, the country has consistently emphasised the principles of climate justice, sustainable lifestyles and equitable access to clean energy.

These platforms extend India's domestic climate experience into international partnerships, particularly across developing countries seeking affordable pathways to clean energy and climate resilience.

A development model shaped by sustainability

India's climate journey increasingly reflects a broader transformation in its development model.

Renewable energy expansion, cleaner industries, energy-efficient infrastructure, sustainable mobility and green technologies are becoming integral components of economic planning rather than isolated environmental initiatives.

The country's approach demonstrates how climate policies can simultaneously strengthen energy security, encourage manufacturing, attract investment, generate employment and improve technological capabilities.

By embedding sustainability into mainstream development strategies, India is gradually redefining the relationship between economic growth and environmental responsibility.

With renewable energy, innovation, industrial transformation and sustainable infrastructure increasingly shaping national priorities, the country continues to position itself as one of the leading examples of development-driven climate action in the emerging global economy.

Phiên bản di động