The Union Budget FY24 will be tabled nearly a year since Russia invaded Ukraine, triggering the realignment of the EU map, disrupting energy & resource supply chains, and slowing down the global race against climate calamity. During the same time, COP 27 has been convened, India has assumed the Presidency of G20 and outlined its focus on green, inclusive and resilient development.

To improve the quality of life, India has been taking a multipronged approach to economic growth. Strategic initiatives such as Gati Shakti integrates the infrastructure of today to National Education and Training policies that shape the world of tomorrow. In the capital goods sector, Centres of Excellences initiated under the Scheme for Enhancement of Competitiveness by Ministry of Heavy Industry have shown promise and continued investments and incentives for quality R&D will feed into the next step.

Indian exporters will see direct links between international competitiveness and the extent of decarbonisation of their products, operations and supply chain, and their power sources. Hence strategic targeted allocation to help them step up their offering and to production to international standards, while incentivising embedding of technologies to reduce their climate footprint is essential.

Green energy

It is also imperative for India to switch to greener electricity generation. The commitment of half of generation capacity from renewable sources will be a valuable step.

Innovation, and the localisation of technologies and solutions will be crucial for investments in green networks. For multiplier effects, the ambit of Production Linked Incentive Schemes must be cast wider.

Building digital infrastructure, resilient supply chains, supporting digital skills, will catalyse the nation’s growth prospects.

The writer is Managing Director & CEO, Hitachi Energy India and South Asia

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