Green Manufacturing for a Net-zero India: Industrial Policy in the Decarbonisation Decade
Shubhansh Garg
Executive Summary
Green manufacturing is a critical yet underdeveloped part of India’s decarbonization strategy. Unlike the adoption of green technologies (i.e., installing solar plants), which have established, financially proven business models and technologies, green manufacturing faces complex, technology-specific challenges in domains such as advanced battery technologies, carbon capture systems, renewable energy equipment, and industrial efficiency solutions. Common obstacles include a lack of access to financing and scaling opportunities due to being an early-stage company in India, elevated technology risks, and hyper-competition from early-stage movers in China, Europe, and the United States. One of the key challenges is accessing capital, both for early and late-stage technologies.
To address these challenges, India must establish comprehensive mechanisms to accelerate green manufacturing. This paper documents insights gathered during a high-level roundtable discussion featuring distinguished experts across multiple sectors. It seeks to identify essential policy reforms and financial mechanisms to stimulate green manufacturing investments in India. Additionally, it examines the potential role of public-sector banks, private equity firms, venture capital funds, multilateral development institutions, and regulatory bodies in enabling the manufacturing sector’s sustainable transformation.