Clean industrialisation not impediment but catalyst for economic expansion: Bhupender Yadav

New Delhi, Dec 3 (PTI) Union Environment Minister Bhupender Yadav on Wednesday asserted that clean industrialisation is not a constraint, rather a catalyst for economic expansion, innovation, resilience and prosperity.

Decarbonising India's manufacturing sector is a strategic imperative to enhance the country's export competitiveness and avoid future carbon-related trade concerns, he said during a session at IndiaEdge 2025 summit, organised by the Confederation of Indian Industry (CII) on the theme of "Green growth: Aligning sustainability with competitiveness".

Yadav noted that India's progress toward energy independence has been remarkable. "Non-fossil power now accounts for over 50 per cent of installed capacity, enabling us to meet the revised Nationally Determined Contribution (NDC) target five years ahead of schedule," he said.

NDCs are national climate plans under the Paris Agreement that set targets to cut emissions and adapt to climate change, guiding global efforts to limit warming to 1.5 degrees Celsius.

Addressing the summit, the environment minister said, "India now ranks ninth globally in total forest area, third in annual net forest gain, and fifth among top global carbon sinks with forests removing 150 metric tonnes of carbon dioxide annually during 2021-2025. But these numbers tell only one part of the story." "Amid anthropogenic and geopolitical turbulence, India has emerged as a trusted global partner, redefining development to correct imbalances, prioritising green technologies, embedding circularity, promoting sustainable manufacturing and integrating nature-based solutions," he said.

Yadav said that aligning sustainability with competitiveness was the key to powering enduring, resilient and inclusive development.

"India is the world's fourth-largest economy and is poised to become the third by 2030 with a projected GDP of USD 7.3 trillion. Our real growth reached 7.8 per cent in the financial year 2025-26, up from 7.4 per cent, the fastest in seven quarters." Pointing at the figures, the minister said, "Clean industrialisation is not a constraint, it is a catalyst for economic expansion, innovation, resilience and future prosperity. Decarbonising our manufacturing sector is a strategic imperative to enhance India's export competitiveness and avoid future carbon-related trade concerns." Yadav asserted that India continues to advance ambitious initiatives across renewable energy, disaster resilience, biodiversity conservation and industrial transformation. Recent policy reforms reflect this holistic approach.

"GST 2.0 reforms launched in October reaffirmed green growth by reducing tax rates from 12 per cent to 5 per cent on renewable energy equipment, biodegradable plastics, effluent treatment plants and electric vehicles. By accelerating clean power adoption, strengthening waste management and protecting ecosystems, the government has made sustainable options more affordable.

"Industry must seize this opportunity to invest in green manufacturing, integrate eco-friendly practices across supply chains and collaborate to scale technologies for global competitiveness. Industry can participate by investing in facilities, innovating across electric vehicles and renewable value chains, and scaling green manufacturing through technology integration," he said.

Yadav also called upon the industry to actively partner in these efforts to propel India's sustainable ambitions by carving a global competitive edge.

"While barriers to climate finance persist, India is strengthening its ability to access funds through institutional capacity building. To counter climate change and build resilience. India mainstreams adaptation through national and state-level planning and community-led projects in climate-resilient agriculture, water management, and ecosystem management and eco-restoration." He urged industry leaders to work closely with value chain partners and MSMEs to embrace circularity. "This will not only improve India's competitiveness but also open doors to new markets and position our manufacturers firmly with global value chains," Yadav added. PTI GJS GJS NSD NSD