Conquering the green frontier(Indian
Mains Paper 3:Economy
Prelims level: Twin transformation
Mains level: Requirement of green transformation needed in Indian Economy
- The forces of liberalisation and globalisation have transformed the
Indian economy in the past three decades.
- Union government has accelerated these trends by implementing a set of
far-reaching reforms, which have led to macro-economic stability, a robust
safety net for all and strong growth.
- It now have one of the most open market economies in the world and are
poised to get to $5 trillion in GDP in the next few years.
Need to effective use the resources:
- India must have globally leading companies across a range of key sectors
such as financial services and manufacturing.
- India must also adopt a resource-efficient, low-carbon development
pathway to utilise scarce natural resources effectively.
- There is no other way. Apocalyptic air pollution, dire water shortages,
rising temperatures, and extreme climate events have already brought us to
the brink of an environmental crisis.
- The world needs India’s leadership to achieve the 2 degree Celsius
global warming target.
- No nation has ever attempted these twin transformations — high
competitiveness and long-term sustainability — simultaneously.
- The traditional development model has been a farm-to-factory development
model with economies transitioning from traditional agriculture to
resource-intensive, urban manufacturing.
- India has to forge a different development model — one that will shift
India’s workforce from agriculture to globally leading, resource-efficient
- Also, these companies must use the most advanced green technologies and
- India’s development model will, therefore, need to take the Indian
economy from “the farm-to-green frontier”.
Three focus areas for transformation:
1. To achieve green target:
- To specific and stable policy goals need to be established to set
detailed green targets for various sectors. A macro-economic model that
factors in current skills, sectoral connections, relative emissions, and
financial constraints is necessary to inform such targets going forward.
- Decarbonisation approaches in the green frontier scenario will drive the
growth of green industries, green jobs, green skills, green entrepreneurs
and green finance.
- Investments in green assets will only be possible if there is sanctity
of contracts, pricing stability, and consistent policies that are backed up
by the full force of law.
- These specific and stable policy goals need to be implemented urgently
to avoid lock-in with high-carbon assets.
2. Develop institutional framework for environmental governance:
- India may need to revamp its existing institutional framework for
environmental governance in order to align it with the country’s green
- As demonstrated by global best practices, a comprehensive institutional
framework could include four levels — super sovereign, sovereign,
state/province and city.
- An independent council or board may also be required to monitor, report,
and verify green targets.
3. Improve waste management:
- Indian policymakers and entrepreneurs will unleash market forces that
will drive the growth of waste management, solar panels, electric vehicles,
super-efficient appliances, recyclable food packaging, clean coal, etc.
- These green industries will require massive investments and appropriate
financing capacity will have to be created to support their growth.
Preliminary estimates suggest that India’s green transformation may require
an average investment of $95 billion to $125 billion per year, aggregating
over $1 trillion in the next decade.
- A “green super fund” could be established to jumpstart green investments
by pooling together international and domestic capital. Such a financial
institution could play a dual role in mediating and mitigating risk for
global capital, as well as identifying sectoral project pipelines.
- Indian financial institutions have been very successful in building up
new industries (such as microfinance, EdTech, and affordable healthcare),
which have delivered both financial and social returns;
- However, financial support for green industries will have to be orders
of magnitude larger.
- The “green super fund” may have to be able to invest across the capital
structure (debt plus equity) as well as across the company lifecycle (early
stage, growth capital, infrastructure investments, and so on).
Our future depends on how we resolve our environmental
We are the world’s third-largest carbon emitter and will
play a crucial role in getting the planet to a low-carbon trajectory.
We must urgently transform our economy to get to the green
Q.1) With reference to the Ninth Schedule of the Constitution, consider
the following statements:
1. It contains a list of central and state laws which cannot be challenged
2. The Schedule became a part of the Constitution in 1973.
Which of the statements given above are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) None of the above
Q.1) What do you mean by the green transformation of the growth? What are the
major advantages of the green transformation of the growth?