India’s Low Carbon Growth Strategy: Transforming Energy, Transport, and Agriculture

India faces a unique climate challenge. As the world’s third-largest energy consumer and second-largest coal user after China, the country must balance rapid economic growth with urgent decarbonization goals. To address this, India has developed a comprehensive low carbon growth strategy that touches nearly every sector of its economy, from renewable energy expansion to agricultural reforms and disaster preparedness. This multifaceted approach represents one of the most ambitious climate transformation programs in the developing world.

Energy sector transformation: from coal dependence to renewable leadership 🔗

India’s energy transition has accelerated dramatically in recent years. The country’s total installed renewable energy capacity reached 220.10 GW by March 2025, with a record addition of 29.52 GW in the fiscal year 2024-25 alone. This growth trajectory positions India well to achieve its target of 500 GW of non-fossil fuel-based capacity by 2030 under the Panchamrit commitments.

Solar energy has emerged as the primary driver of this transformation. India’s installed solar capacity now stands at approximately 106 GW, with ground-mounted installations accounting for 81 GW, rooftop solar contributing 17 GW, and hybrid projects adding nearly 3 GW. Wind power has also crossed significant milestones, with cumulative wind capacity reaching 50 GW following the addition of 4.15 GW in FY 2024-25.

Policy frameworks supporting energy transition 🔗

Under the Paris Agreement, India committed to achieving 50% of its electricity generation from non-fossil fuel sources by 2030, an enhanced target from the earlier 40% goal. The 2016 revised Tariff Policy mandated that distribution companies purchase renewable energy and waived inter-state transmission charges for solar and wind power, making green energy more competitive against conventional sources.

India now ranks fourth globally in renewable energy installed capacity, fourth in wind power, and third in solar power capacity. Renewables now constitute over 50% of India’s total installed power capacity, achieving the COP26 commitment five years ahead of the 2030 deadline. Beyond installed capacity, the pipeline remains robust, with 169 GW of renewable projects under implementation and another 65 GW already tendered.

Electrifying mobility: India’s transport sector initiatives 🔗

The transport sector presents both a challenge and an opportunity for India’s low carbon strategy. To reduce vehicle emissions, India launched the National Mission for Electric Mobility in 2011, setting ambitious targets for electric vehicle adoption across all vehicle categories.

Evolution of EV support schemes 🔗

The FAME (Faster Adoption and Manufacturing of Electric Vehicles) program served as India’s flagship EV promotion policy, providing fiscal incentives to EV buyers. FAME-II, launched in April 2019 with a budget of ₹10,000 crore (later increased to ₹11,500 crore), supported over 1.3 million electric vehicles with subsidies totaling approximately ₹11,500 crore before ending in March 2024.

Following FAME-II’s conclusion, the government introduced the Electric Mobility Promotion Scheme (EMPS) 2024 as a transitional measure, offering subsidies for electric two-wheelers and three-wheelers. In September 2024, India launched the PM E-DRIVE Scheme with a total budget of ₹10,900 crore to accelerate EV adoption further. This scheme provides incentives for 2.47 million electric two-wheelers, 316,000 electric three-wheelers, and over 14,000 electric buses.

Biofuel blending targets 🔗

India’s amended biofuels policy has achieved remarkable progress. Ethanol blending rates surged to 18% by the end of 2024, up from just 1.53% in 2014. By February 2025, blending had reached nearly 18%, putting India on track to achieve its 20% ethanol blending target by 2025-26, ahead of the originally planned 2030 deadline.

The Ethanol Blending Programme has delivered significant benefits, saving over ₹1 lakh crore in foreign exchange, reducing CO2 emissions by more than 500 lakh metric tonnes, and substituting 173 lakh metric tonnes of crude oil imports. E20 fuel is now available at over 15,600 retail outlets across India, while E100 fuel has been launched at over 400 outlets, demonstrating the scale of biofuel infrastructure development.

Agricultural and forestry approaches to emission reduction 🔗

Agriculture contributes approximately 16% of India’s greenhouse gas emissions, primarily through livestock methane, rice cultivation, and fertilizer use. The National Mission for Sustainable Agriculture addresses these emissions through multiple interventions.

Neem coated urea revolution 🔗

In 2015, India mandated 100% neem coating on all subsidized agricultural-grade urea. This seemingly simple intervention has produced transformative results. The policy aimed to control excessive urea use in agriculture while preventing diversion of subsidized fertilizer to industrial purposes.

Neem coating slows the release of nitrogen, improving nutrient uptake efficiency and reducing nitrous oxide emissions, a potent greenhouse gas. Studies confirm that the emission of nitrous oxide is significantly reduced through neem coating. The reform has saved the government an estimated ₹10,000 crore by preventing urea diversion to non-agricultural uses. Beyond environmental benefits, farmers have reported increased crop yields, reduced pesticide requirements, and improved net returns.

Solar irrigation and agricultural modernization 🔗

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme promotes solar-powered irrigation, reducing reliance on diesel pumps and grid electricity. The installation of hundreds of thousands of solar water pumps across India has reduced both energy consumption and farming costs while lowering the carbon footprint of agricultural operations.

Expanding forest cover for carbon sequestration 🔗

Under the Paris Agreement, India pledged to create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030. This commitment reflects forests’ critical role in India’s climate strategy.

According to the India State of Forest Report 2023, total forest and tree cover stands at 827,357 square kilometres, representing 25.17% of the country’s geographical area. Carbon stock in India’s forests has reached 7,285.5 million tonnes, an increase of 81.5 million tonnes from the previous assessment.

Challenges and opportunities 🔗

While official reports indicate forest cover increases, research suggests that rising temperatures and erratic rainfall are weakening forests’ ability to absorb carbon dioxide. A study by IIT Bombay found that despite an 18.5% increase in green cover between 2001 and 2019, this failed to translate into increased carbon uptake due to warming constraints.

The National Mission for a Green India and programmes like the National Afforestation Programme work to enhance forest cover. India also promotes agroforestry methods and alternative carbon sequestration approaches including blue carbon ecosystems like mangroves, which sequester carbon significantly more efficiently than terrestrial forests.

Disaster management and climate adaptation 🔗

India enacted the Disaster Management Act in December 2005, establishing the National Disaster Management Authority (NDMA) headed by the Prime Minister, along with State and District Disaster Management Authorities. This institutional framework coordinates disaster preparedness, mitigation, response, and recovery across all government levels.

Integrating climate risk into disaster planning 🔗

The National Disaster Management Plan incorporates commitments to the Sendai Framework for Disaster Risk Reduction, Sustainable Development Goals, and Paris Agreement on Climate Change. This integration ensures that disaster planning accounts for the increasing frequency and intensity of climate-related extreme events.

The Disaster Management (Amendment) Bill, passed in 2024-25, adds critical new functions including periodic assessment of disaster risks from extreme climate events, preparation of national and state disaster databases, and establishment of Urban Disaster Management Authorities. These amendments recognize the growing nexus between climate change and disaster vulnerability.

The Aapda Mitra Scheme has trained 100,000 community volunteers in disaster rescue across 350 multi-hazard disaster prone districts, building grassroots resilience capacity throughout the country.

Natural gas expansion and cleaner fuels 🔗

With oil comprising approximately 29% of India’s energy consumption and projected to increase substantially by 2040, the government has implemented multiple strategies to reduce petroleum dependence. These include subsidy rationalization, tax reforms, and expansion of natural gas infrastructure.

The plan to increase natural gas in the energy mix from 6% to 15% supports cleaner fuel adoption, particularly in the power generation, transport, and industrial sectors. Compressed Natural Gas (CNG) for vehicles and Piped Natural Gas (PNG) for households have expanded significantly in recent years, reducing local air pollution while lowering carbon intensity compared to liquid petroleum products.

The path forward 🔗

India’s low carbon growth strategy represents a comprehensive effort to decouple economic development from emissions growth. The country has demonstrated that emerging economies can pursue ambitious climate action while maintaining development priorities. With renewables now exceeding 50% of installed power capacity five years ahead of schedule, ethanol blending approaching 20%, and institutional frameworks for climate-resilient disaster management strengthening, India has established foundations for continued progress.

However, challenges remain substantial. Scaling up renewable energy to 500 GW by 2030, achieving net-zero emissions by 2070, and adapting to accelerating climate impacts will require sustained investment, policy innovation, and international cooperation. The success of India’s approach offers lessons for other developing nations navigating similar tensions between growth imperatives and climate responsibilities.

What do you think? How can developing countries like India balance the need for rapid economic growth with ambitious climate commitments? What role should international climate finance play in supporting such transitions?

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