{"id":6494,"date":"2020-02-23T16:35:59","date_gmt":"2020-02-23T11:05:59","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=6494"},"modified":"2020-02-23T16:38:02","modified_gmt":"2020-02-23T11:08:02","slug":"green-transformation-needed-in-indian-economy","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/green-transformation-needed-in-indian-economy\/","title":{"rendered":"Green transformation needed in Indian Economy"},"content":{"rendered":"<p><strong>Relevance: Mains: G.S paper III: Economy<\/strong><\/p>\n<p><a href=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/climate-change.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-6495\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/climate-change.jpg\" alt=\"\" width=\"759\" height=\"422\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/climate-change.jpg 759w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/climate-change-150x83.jpg 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/climate-change-300x167.jpg 300w\" sizes=\"auto, (max-width: 759px) 100vw, 759px\" \/><\/a><\/p>\n<p><span style=\"color: #ff0000;\"><strong>Context:<\/strong><\/span><\/p>\n<ul>\n<li>The forces of liberalisation and globalisation have transformed the Indian economy in the past three decades.<br \/>\n\u2022 Union government has accelerated these trends by implementing a set of far-reaching reforms, which have led to macro-economic stability, a robust safety net for all and strong growth.<br \/>\n\u2022 It now have one of the most open market economies in the world and are poised to get to $5 trillion in GDP in the next few years.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Need to effective use the resources:<\/strong><\/span><\/p>\n<ul>\n<li>India must have globally leading companies across a range of key sectors such as financial services and manufacturing.<br \/>\n\u2022 India must also adopt a resource-efficient, low-carbon development pathway to utilise scarce natural resources effectively.<br \/>\n\u2022 There is no other way. Apocalyptic air pollution, dire water shortages, rising temperatures, and extreme climate events have already brought us to the brink of an environmental crisis.<br \/>\n\u2022 The world needs India\u2019s leadership to achieve the 2 degree Celsius global warming target.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Twin transformation:<\/strong><\/span><\/p>\n<ul>\n<li>No nation has ever attempted these twin transformations \u2014 high competitiveness and long-term sustainability \u2014 simultaneously.<br \/>\n\u2022 The traditional development model has been a farm-to-factory development model with economies transitioning from traditional agriculture to resource-intensive, urban manufacturing.<br \/>\n\u2022 India has to forge a different development model \u2014 one that will shift India\u2019s workforce from agriculture to globally leading, resource-efficient businesses.<br \/>\n\u2022 Also, these companies must use the most advanced green technologies and business models.<br \/>\n\u2022 India\u2019s development model will, therefore, need to take the Indian economy from \u201cthe farm-to-green frontier\u201d.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Three focus areas for transformation:<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"color: #0000ff;\"><strong> To achieve green target:<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>To specific and stable policy goals need to be established to set detailed green targets for various sectors. A macro-economic model that factors in current skills, sectoral connections, relative emissions, and financial constraints is necessary to inform such targets going forward.<br \/>\n\u2022 Decarbonisation approaches in the green frontier scenario will drive the growth of green industries, green jobs, green skills, green entrepreneurs and green finance.<br \/>\n\u2022 Investments in green assets will only be possible if there is sanctity of contracts, pricing stability, and consistent policies that are backed up by the full force of law.<br \/>\n\u2022 These specific and stable policy goals need to be implemented urgently to avoid lock-in with high-carbon assets.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><span style=\"color: #0000ff;\"><strong> Develop institutional framework for environmental governance:<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>India may need to revamp its existing institutional framework for environmental governance in order to align it with the country\u2019s green transformation.<br \/>\n\u2022 As demonstrated by global best practices, a comprehensive institutional framework could include four levels \u2014 super sovereign, sovereign, state\/province and city.<br \/>\n\u2022 An independent council or board may also be required to monitor, report, and verify green targets.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><span style=\"color: #0000ff;\"><strong> Improve waste management:<\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li>Indian policymakers and entrepreneurs will unleash market forces that will drive the growth of waste management, solar panels, electric vehicles, super-efficient appliances, recyclable food packaging, clean coal, etc.<br \/>\n\u2022 These green industries will require massive investments and appropriate financing capacity will have to be created to support their growth. Preliminary estimates suggest that India\u2019s green transformation may require an average investment of $95 billion to $125 billion per year, aggregating over $1 trillion in the next decade.<br \/>\n\u2022 A \u201cgreen super fund\u201d could be established to jumpstart green investments by pooling together international and domestic capital. Such a financial institution could play a dual role in mediating and mitigating risk for global capital, as well as identifying sectoral project pipelines.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Way ahead:<\/strong><\/span><\/p>\n<ul>\n<li>Indian financial institutions have been very successful in building up new industries (such as microfinance, EdTech, and affordable healthcare), which have delivered both financial and social returns;<\/li>\n<li>However, financial support for green industries will have to be orders of magnitude larger.<br \/>\n\u2022 The \u201cgreen super fund\u201d may have to be able to invest across the capital structure (debt plus equity) as well as across the company lifecycle (early stage, growth capital, infrastructure investments, and so on).<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Conclusion:<\/strong><\/span><\/p>\n<ul>\n<li>Our future depends on how we resolve our environmental challenges.<br \/>\n\u2022 We are the world\u2019s third-largest carbon emitter and will play a crucial role in getting the planet to a low-carbon trajectory.<br \/>\n\u2022 We must urgently transform our economy to get to the green frontier.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS. <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Mains: G.S paper III: Economy Context: The forces of liberalisation and globalisation have transformed the Indian economy in the<\/p>\n","protected":false},"author":1,"featured_media":3299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,42,43],"tags":[392],"class_list":["post-6494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/6494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=6494"}],"version-history":[{"count":3,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/6494\/revisions"}],"predecessor-version":[{"id":6499,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/6494\/revisions\/6499"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3299"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=6494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=6494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=6494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}