Clean-Tech Path to Economic Growth

This editorial is based on “Gaining clean-tech edge” which was published in The Hindu on 18/06/2025. The article brings into focus the potential for India to become a global clean-tech manufacturing leader by leveraging green technology and enhancing testing infrastructure and standards.

For Prelims: Clean-tech,National Manufacturing Mission, Green technology, Electric vehicles, India's solar module capacity,  National Critical Mineral Mission, Alkaline Seawater Electrolyzer to Generate Hydrogen 

For Mains: Role of Clean Technology Play in Advancing India's Economic Development, Key Issues Associated with Clean-Tech in India.

India stands at a crucial juncture to emerge as a global clean-tech powerhouse, with the National Manufacturing Mission's focus on green technology offering a strategic pathway to achieve this ambition.Robust testing infrastructure and enhanced standards development will be essential for international competitiveness in clean-tech manufacturing. If executed effectively, this clean manufacturing push could position India as a global leader in clean-tech trade, transforming both its industrial landscape and international standing. 

What Role can Clean Technology Play in Advancing India's Economic Development? 

• Driving Economic Growth through Job Creation: As India transitions to clean-tech industries, sectors like solar, wind, electric vehicles (EVs), and battery storage will create millions of jobs, crucial for India's young workforce.  
  • The energy transition alone could generate 5-6 million jobs by 2030, and 9-10 million by 2047.  
    • This shift is supported by India's focus on a sustainable economy, which sees the clean-tech sector as a job-rich growth engine, especially in manufacturing, R&D, and project execution. 
• Enhancing Energy Security and Reducing Dependency on Imports: The push for clean technology directly reduces India's reliance on imported fossil fuels, promoting self-sufficiency in energy production.  
  • By advancing the domestic production of solar panels, wind turbines, and battery storage, India can significantly cut down on energy imports, which currently burden the economy.  
    • In 2023, India's solar module capacity grew fourfold to meet domestic demand, aligning with the PLI schemes for solar and battery production, reducing dependence on Chinese imports. 
• Catalyzing Technological Innovation and R&D Growth: India’s clean-tech revolution is spurring technological innovations, particularly in energy storage, hydrogen, and battery technologies.  
  • The National Manufacturing Mission and PLI schemes for electric vehicles and solar components emphasize R&D to keep India competitive globally. 
    • These innovations not only enhance manufacturing but also lead to breakthroughs that can position India as a global leader in clean technologies, creating a robust ecosystem of start-ups, universities, and corporate partnerships. 
  • The Bharat Cleantech Manufacturing Platform launched in 2025 aims to boost R&D collaboration in green technologies, facilitating the commercialization of advanced energy storage and solar technologies. 
• Strengthening India's Position in Global Clean Energy Supply Chains: India’s focus on clean-tech manufacturing is transforming it into a global hub for renewable energy equipment production.  
  • By leveraging cost advantages in labor and raw materials like steel, copper, and aluminum, India can position itself as a strategic partner in global supply chains, tapping into markets with increasing demand for sustainable products.  
  • The "China+1" strategy, where nations look for alternatives to China-based supply chains, presents a window for India to boost exports of clean-tech products. 
    • India’s clean-tech exports, particularly solar PV modules, surged to 5 GW in 2023, expanding market share in the US and Europe, signaling India’s rise as a manufacturing base for green energy equipment. 
• Fostering a Circular Economy and Waste Recycling Industry: Clean-tech in India is not just about renewable energy but also about creating sustainable solutions for waste management and recycling.  
  • Emphasizing circularity, the clean-tech industry can reduce environmental impact by reclaiming valuable materials from end-of-life products like solar panels and batteries.  
  • With initiatives like the National Critical Mineral Mission, India can tap into recycling to address critical mineral shortages, essential for batteries and solar technologies. 
• Accelerating Urban Sustainability and Green Infrastructure Development: Clean technologies will play a pivotal role in shaping India’s urban future, addressing energy demands, and mitigating pollution.  
  • By adopting green building materials, electric vehicles, and sustainable construction methods, India can lead the way in building eco-friendly cities. 
  • India is making significant strides in green building practices, driven by government policies, green building rating systems like Leadership in Energy & Environmental Design and Green Rating for Integrated Habitat Assessment, and increasing awareness of the need for sustainable development. 
• Reducing Environmental and Health Impacts: The transition to clean technology significantly improves public health by reducing pollution and carbon emissions, crucial for a country like India, where air pollution causes over 1.2 million deaths annually. 
  • Clean-tech innovations in energy, transportation, and waste management can lower carbon footprints while improving the quality of life for millions.  
  • The EV sales surge in India is a key step in cutting vehicular emissions, which contribute to around 30% of the nation’s air pollution. 

What are the Key Issues Associated with Clean-Tech in India?  

• Dependency on Imported Raw Materials: India's clean-tech sector remains highly dependent on imports, particularly for critical materials like lithium for batteries, silicon for solar panels, and rare earth elements for wind turbines.  
  • This dependency creates vulnerabilities in terms of price volatility and supply chain disruptions, which could affect the scalability of India's clean-tech goals.  
    • Despite efforts to bolster domestic manufacturing, India still imports 80% of its solar components and 75-85% of batteries, limiting self-sufficiency. 
  • Also, recently China has imposed export restrictions on seven rare earth elements and magnets that pose supply chain risks for India.  
• Technological Gaps and Innovation Challenges: India faces significant challenges in developing indigenous technologies in clean-tech, particularly in advanced sectors like green hydrogen and high-efficiency solar panels.  
  • While the country has made strides in manufacturing, it lags behind in critical innovations that would enable long-term sustainability and competitiveness.  
    • For example, India's electrolyzer technology for hydrogen production remains underdeveloped, delaying progress towards green hydrogen goals. 
• Insufficient Infrastructure for Clean-Tech Integration: While India’s clean-tech sector is growing rapidly, the lack of adequate infrastructure—particularly for grid integration and energy storage—remains a major roadblock.  
  • To manage intermittent renewable energy sources like solar and wind, India needs to develop robust storage solutions and smart grid technologies.  
    • As of now, India’s grid is underdeveloped in terms of handling large-scale renewables integration, risking inefficiencies and wastage. 
  • India's renewable energy capacity reached 209 GW in 2024, yet the inadequate energy storage systems hinder the optimal use of this capacity. To fully harness it, India will require 336 GWh of storage by 2030. 
• High Capital Expenditure and Financing Issues: The capital-intensive nature of clean-tech manufacturing requires significant investment, which has been a significant barrier for many businesses, especially small and medium enterprises (SMEs).  
  • Despite initiatives like the PLI scheme, funding constraints remain a persistent issue, particularly for emerging technologies like green hydrogen and electric vehicle (EV) infrastructure. This financing gap makes it challenging to scale up production and attract global investors. 
  • In FY24, India secured $2.4 billion in clean-tech deals, yet it still faces an estimated $12.4 trillion investment need to achieve net-zero emissions by 2070, highlighting the funding shortfall. 
• Lack of Skilled Workforce for Clean-Tech Manufacturing: India’s clean-tech sector is hindered by a shortage of skilled labor, particularly in advanced manufacturing processes like solar panel production, EV battery assembly, and carbon capture technologies.  
  • While the National Manufacturing Mission addresses some of these concerns, it still faces challenges in scaling skilled labor pools. 
  • The renewable industry alone faces a skill gap of around 1.2 million, with demand expected to rise by 26% creating a need for 1.7 million skilled workers by 2027 
• Environmental Impact of Clean-Tech Waste Management: While clean-tech aims to reduce emissions and promote sustainability, the end-of-life management of products like solar panels, wind turbines, and EV batteries poses a significant environmental challenge.  
  • According to CEEW, India is expected to generate 600 kilotonnes of solar waste by 2030, but without robust recycling systems, this waste could exacerbate environmental degradation. 
  • The government’s focus on circularity is still in its early stages, and inadequate waste management could undermine the long-term sustainability of the clean-tech sector. 
• Limited Market Demand for Clean-Tech Products: Although there is growing interest in clean technologies, the domestic demand for products like electric vehicles, solar panels, and battery storage systems remains insufficient to drive large-scale manufacturing.  
  • The success of the National Manufacturing Mission depends on creating sustained domestic demand, which currently faces challenges due to high upfront costs and limited consumer awareness. 

What Measures can India Adopt to Accelerate Development of Clean Technology? 

• Strengthen Public-Private Partnerships (PPPs) in Clean-Tech R&D: India should focus on creating a robust framework for collaboration between the government, private sector, and research institutions to accelerate clean-tech innovations.  
  • Public-private partnerships can drive investment in high-risk R&D, reduce commercialization timelines, and bring cutting-edge solutions to market faster. 
  • By incentivizing private companies to invest in R&D through tax benefits or matching funding, India can create a dynamic ecosystem for next-generation technologies like green hydrogen, advanced batteries, and carbon capture. 
    • Development of Alkaline Seawater Electrolyzer to Generate Hydrogen By IIT-Madras is a significant step in the right direction.  
• Expand and Strengthen the Circular Economy Framework: India must prioritize the development of a circular economy that focuses on reducing waste, reusing materials, and recycling clean-tech products such as solar panels, wind turbines, and EV batteries. 
  • Establishing comprehensive recycling and reverse logistics systems will reduce the environmental footprint of clean-tech products while maximizing resource recovery.  
  • The government can create mandatory recycling quotas for manufacturers and incentivize businesses to design for disassembly and material recovery, making clean-tech more sustainable in the long run. 
• Revamp Skill Development for Clean-Tech Industries: To support the growth of the clean-tech sector, India must urgently invest in upskilling and reskilling its workforce, particularly in high-tech manufacturing and maintenance fields.  
  • Setting up specialized vocational training programs, industry-specific certifications, and university partnerships will help bridge the skills gap in sectors like solar manufacturing, battery technology, and electric vehicle servicing. 
  • Aligning these training programs with industry needs will ensure the creation of a skilled workforce that can power the clean-tech revolution. 
• Create an Integrated Clean-Tech Financing Mechanism: India needs to develop a dedicated clean-tech financing mechanism to address the funding gap in clean technology startups and large-scale manufacturing projects.  
  • A combination of government-backed loans, venture capital, and green bonds can help de-risk investments in emerging technologies. 
  • The creation of a Green Bank or Clean-Tech Investment Fund could mobilize capital specifically for clean-tech ventures, supporting long-term growth and innovation while lowering the financial barriers for startups. 
• Implement Green Procurement Policies at Government and Corporate Levels: The government and large corporations must adopt green procurement policies that prioritize clean-tech products and services in their purchasing decisions.  
  • Supporting the scaling of domestic clean-tech startups and providing them with preferential access to government contracts will incentivize further R&D and strengthen India's competitive edge in global markets. 
  • These policies would not only accelerate the adoption of green technologies but also create stable market conditions for manufacturers, helping to scale production and reduce costs. 
• Foster Innovation Ecosystems in Tier-2 and Tier-3 Cities: To promote clean-tech development across the country, India should incentivize innovation ecosystems in smaller cities and rural areas, where manufacturing costs are lower and untapped potential exists.  
  • By setting up clean-tech incubators, providing financial support to local startups, and connecting them to national and global markets, India can harness the creative potential of regional talent.  
  • This decentralization of innovation will encourage inclusive growth and create regional hubs for clean-tech manufacturing. 
• Strengthen International Collaboration for Clean-Tech Export: India should forge strategic alliances with leading clean-tech markets such as the EU, the US, and Japan to strengthen its position as a global clean-tech supplier.  
  • This can be achieved by establishing free trade agreements that include clean-tech components and technologies, ensuring Indian products gain easier access to international markets. 
  • In addition, fostering collaborations for joint ventures, knowledge exchange, and infrastructure development will allow India to leverage global expertise and technology to accelerate its clean-tech ambitions. 
• Foster Energy Storage and Smart Grid Innovations: To effectively integrate renewable energy sources, India must prioritize the development and deployment of advanced energy storage systems and smart grid technologies.  
  • Energy storage solutions such as grid-scale batteries, pumped hydro storage, and thermal energy storage will address the intermittency issues of renewable energy sources like solar and wind.  
  • Investing in smart grid infrastructure that optimizes energy distribution, reduces losses, and enhances grid resilience will be crucial in maintaining a stable and efficient energy system. 
• Establish a National Clean-Tech Certification System:  India should introduce a national clean-tech certification system to standardize and regulate the quality of clean-tech products and services.  
  • This certification can ensure that products meet rigorous environmental and performance standards, giving consumers confidence in their purchase decisions.  
  • By creating a trusted certification process, India can differentiate itself in global markets and help Indian companies gain access to international markets with strict environmental regulations, such as the EU’s Ecodesign standards. 
• Enhance Research in Low-Carbon Construction and Green Materials: With the construction sector contributing significantly to emissions, India must accelerate research into low-carbon building materials and energy-efficient construction methods. 
  • Government support for the development of green materials, such as bioplastics, hemp-based concrete, and bamboo, could lead to more sustainable urbanization.  
  • Alongside material innovation, promoting energy-efficient building designs, retrofitting programs, and green building certifications will foster sustainable development in India’s rapidly growing urban landscape. 

Conclusion:

India’s clean-tech transformation presents an unprecedented opportunity to drive sustainable economic growth while contributing significantly to the achievement of SDGs like Affordable and Clean Energy (SDG 7) and Decent Work and Economic Growth (SDG 8). By focusing on infrastructure development, skill enhancement, and fostering a circular economy, India can create a self-sustaining and globally competitive clean-tech sector.  

Drishti Mains Question:

India is at a crucial juncture to emerge as a global clean-tech manufacturing powerhouse, with its focus on green technology through initiatives like the National Manufacturing Mission. Discuss the potential role of clean-tech in advancing India’s economic development. 

UPSC Civil Services Examination, Previous Year Question (PYQ)    

Mains:

Q. Describe the benefits of deriving electric energy from sunlight in contrast to conventional energy generation. What are the initiatives offered by our government for this purpose? (2020)

Q. India has immense potential for solar energy though there are regional variations in its developments. Elaborate. (2020)