India’s manufacturing industry projecting a USD 1 trillion valuation by 2025-26, green manufacturing through sustainable means to reduce emissions and waste is picking up pace.
Already, 68% of manufacturers incorporated green initiatives in 2024, as per a CII report. India is falling in line with worldwide climate targets while enhancing competitiveness. But is green manufacturing really flying, and what’s still holding it back?
Green practices are changing industries. Tata Steel’s Jamshedpur facility, aiming for net-zero by 2045, generates power from solar energy and recycles 97% of waste, offsetting USD 10 million every year. Textile companies in Coimbatore implement waterless dyeing, minimizing water consumption by 40%, according to Ficci.
The Production Linked Incentive (PLI) scheme with USD 27 billion rewards solar panel and EV manufacturing, encouraging companies like Mahindra to introduce electric SUVs in 2025.
These initiatives reduce carbon footprints, with 15% of India’s manufacturing emissions reduced since 2020, according to Invest India.
Government policies drive this change. The National Green Hydrogen Mission, priced at INR 19,744 crore, facilitates the adoption of clean fuel in cities such as Bhubaneswar. The PM Gati Shakti Plan encourages energy-saving logistics, reducing fuel consumption by 12% by 2024.
Initiatives such as the Perform, Achieve, and Trade (PAT) scheme motivate companies for energy savings, favoring 1,000 units. The demand for sustainable products worldwide, particularly in the EU, compels Rajkot’s exporters to embrace green certifications, increasing orders by 20%.
But hurdles remain. 70% of MSMEs are discouraged by high expenditures, not having money for solar panels or recycling solutions, according to Nasscom.
Only 25% of producers employ renewable energy, hindered by irregular grid supply in Tier-2 cities such as Ludhiana. Lack of skills, with only 10% of the workforce trained in green technology, is slowing down takeoff. Delays by regulators in clearing clean projects also slow down the pace, according to industry leaders.
Solutions are on the horizon. The Green Credit Programme provides subsidies for sustainable upgrades, and Skill India trains 5,000 workers per month in green technologies.
MSMEs in clusters such as Oragadam share solar infrastructure, reducing costs. Public-private partnerships, such as Gujarat’s, install wind turbines, increasing access to clean energy. Beginning with low-cost measures, such as LED lighting, enables firms to scale sustainably.
The inertia is evident. Green manufacturing can save USD 30 billion per year, according to CII, and bring FDI, which reached USD 17.96 billion in FY23-24. “Sustainability is a competitive advantage,” said Anil Sharma, a Ficci analyst. “India’s factories are turning green.”