changeadminIndia’s Economic Survey for the 2024-25 was tabled in the Parliament today by Minister for Finance and Corporate Affairs Mrs Nirmala Sitharaman. The Economic Survey is released before India’s annual financial budget to outline the country’s economic condition, challenges such as inflation, unemployment, and fiscal deficits and opportunities these challenges present.
Given the challenges of climate change, this year’s Economic survey reflects India’s ambition to become Viksit Bharat (a developed economy) by 2047 aligned with the vision of sustainable development.
The Survey mentions that despite having a very low per capita carbon emission, India is on a development pathway that not only ensures affordable energy security but also job creation, economic growth, and ultimately environmental sustainability.
Net-Zero emission by 2070
To achieve the goal of net zero emissions by 2070, India will need to prioritise investment in extensive grid infrastructure improvements and the secure sourcing of critical minerals necessary for this transformative shift, the Survey notes.
The Survey document mentions that the recent outcome of the New Collective Quantified Goal (NCQG) at CoP29 on climate finance presents little optimism about the possibility of support to developing countries.
The small mobilisation target of USD 300 billion annually by 2035 as the NCQG is a fraction of the estimated requirement of USD 5.1-6.8 trillion by 2030, which disproportionately places the burden of addressing climate change on those nations that have not historically contributed to the crisis.
Bringing Adaptation to the forefront
To prioritize climate adaptation strategy for India, the Economic Survey 2024-25 highlights that India needs to follow a multi-faceted approach tailored to the regional specificities.
It includes, inter alia, policy initiatives, sector-specific strategies, development of resilient infrastructure, research and development, and securing financial resources for adaptation efforts.
The ongoing work on the preparation of India‘s National Adaptation Plan (NAP) aims to develop a comprehensive and inclusive NAP that aligns with sustainable development goals and ensures climate resilience for all regions and sectors, the Survey noted.
Living walls for a Healthier and more sustainable urban environment
In light of the rapid urbanisation leading to the urban heat island effect, increasing carbon emissions, and heightened air pollution, the Economic Survey 2024-25 mentions a promising solution which is gaining traction, viz. vertical gardens, also called living walls or vertical greenery systems (VGS).
By transforming urban facades into vibrant green landscapes, vertical gardens not only enhance the aesthetic appeal of buildings and contribute to environmental sustainability but also improve thermal performance, sequestering carbon, and fostering biodiversity in densely populated cities.
The Economic Survey 2024-25 mentions the scope of further enhancements in the Energy Conservation and Sustainable Building Code (ECSBC), such as explicit guidelines for vertical gardens for improving urban air quality and mitigating heat islands.
Energy transition
While the Survey highlights the remarkable progress in building renewable energy capacity, it also mentions that effectively harnessing and scaling these resources remains challenging due to the lack of viable storage technologies and limited access to essential minerals.
The Economic Survey 2024-25 mentions the friction between energy transition and energy security as clearly evident in the actions of developed countries and discernible in the limitations of transitioning to renewable energy sources such as wind and solar. It talks about the ‘congestion cost’ of managing a complex energy system incorporating fossil fuels and renewable.
In this regard, the Survey recognizes the importance of thermal power in India’s sustainable development pathway and emphasizes the need to promote the efficient use of coal by utilising supercritical (SC), ultra-super-critical (USC) and the recently developed Advanced Ultra Super Critical (AUSC) technologies in coal-based power plants to reduce the emission intensity of the economy.
Nuclear energy: A reliable alternative
The Survey also focuses on Nuclear energy as an efficient and low greenhouse gas emissions source of energy making it an increasingly emerging and reliable alternative to fossil fuels. It also suggests a forward-looking perspective to address potential challenges in advance, facilitating a smoother transition being the need of hour.
It also talks about the challenge of disposing of renewable energy technologies, especially solar panels, revealing how environmental policies can create complex issues. It suggests the need to develop effective disposal methods to manage by-products and materials associated with renewable energy technologies to mitigate potential negative impacts on ecosystems and public health.
India marching ahead towards the NDC target
India is inching closer to its Nationally Determined Contributions (NDC) targets.
As of 30th November 2024, the installed electricity generation capacity of 2,13,701 megawatts from non-fossil fuel sources, accounts for 46.8% of the total capacity, on the path to achieving the updated NDC target of reaching 50% by 2030.
An additional carbon sink of 2.29 billion tonnes CO2 equivalent has also been created between 2005 and 2023 against the NDC target of 2.5 to 3 billion tonnes by 2030.
India’s Installed Generation Capacity (fuel-wise) (30 November 2024)
The impetus to renewable energy and green investments
The government of India has undertaken a wide variety of schemes, policies, financial incentives and regulatory measures to boost renewable energy in the country and boost green investments.
PM Surya Ghar Muftiyojana scheme was announced in the last budget and aims to incentivise rooftop solar systems in Indian households. The rooftop solar scheme targets the installation of rooftop solar panels in 10 million households by 2027. As of January 9, 2025, the scheme has helped more than 0.7 million households.
Further, the production-linked incentive for the National Programme on High-Efficiency Solar Photovoltaic Modules has issued letters of award to set up a total manufacturing capacity of over 48,300 MW.
National Green Hydrogen Mission, launched in 2023 has awarded green hydrogen production capacity of 4.12 lakh tonnes per annum and electrolyzer manufacturing capacity of 3000 MW per annum.
To finance the green initiatives, sovereign Green Bonds worth Rs. 16,000 crore in FY23 and Rs. 20,000 crore in FY24 were issued. In addition, Green Debt Securities worth Rs. 6,325 crore issued by various listed companies as of March 2024.
Mission LiFE: Optimising lifestyles for sustainable development
The Economic Survey 2024-25 highlights the importance of a fundamental shift in mindset and behaviour towards mindful consumption and production to achieve a net zero carbon emissions goal.
In this direction, the India-led global movement, Lifestyle for Environment (LiFE), aims to enhance the country‘s sustainability efforts by encouraging environmentally friendly practices such as waste management, resource conservation, and recycling.
The Indian Economic Survey also highlights the power of collective action, by establishing scenarios – lifestyle change by 13% of the global population can reduce carbon emissions by 20 per cent, finishing the food on a plate can avoid 90 kgs of annual food waste per person, carpool can reduce 780,000 rides per day save 380 million litres of fuel in India and recycling 1 ton of newspaper can avoid 25,000 litres of water wastage.
Promoting a circular economy is also envisioned as a central component under the Mission LiFE. Investments in research and development related to battery storage technologies, as well as the recycling and sustainable disposal of waste associated with renewable energy systems are critical factors in ensuring a reliable supply of energy from renewable sources and its sustainability.
The proactive implementation of LiFE measures can yield substantial co-benefits, including reducing inequalities in energy consumption, mitigating air pollution, achieving cost savings, and enhancing overall well-being and health.
By 2030, it is estimated that these measures could save consumers around USD 440 billion globally through reduced consumption and lower prices.
The Survey emphasizes the need for a comprehensive awareness campaign to transform the LiFE mission into a widespread public movement by integrating the principles of the LiFE mission into school and college curricula to foster an environmental consciousness from a young age.
Several key initiatives have been taken to enhance pro-environment outcomes by implementing measures consistent with LiFE. One notable example is the introduction of the Green Credit Rules to incentivise voluntary efforts toward environmental conservation, resulting in the issuance of green credits.
Other examples include the Tree plantation campaign ‘Ek Ped Maa Ke Naam’ for nudging individual behaviour to promote pro-environmental activities and the Swachh Bharat Mission (SBM) for India’s pursuit of universal sanitation access.
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