India's 7.5% Growth Path to $30T Economy Compatible with Net Zero: NITI Aayog

Speaking at the launch of NITI Aayog's comprehensive set of 11 reports on Viksit Bharat and Net Zero, Subrahmanyam said India is working towards sustained high growth rate while also working towards its net zero goal.

He said the two goals are compatible with India aiming to be a USD 30 trillion economy and that climate action is not a hurdle to Viksit Bharat.

He said India aims to achieve net zero in Green House Gas emissions by 2070.

"We have to juggle with two balls simultaneously. Our developmental goal of becoming a developed nation, which is perfectly doable and is within reach, however, it's not easy. Maintaining a growth rate of anywhere between 7%, 7.5 % for 25 years is a tall order which not more than a dozen nations have done in the world," he said.

"The biggest takeaway is that the two goals are compatible which are India will be a USD 30 trillion economy, and climate action is not a hurdle to Viksit Bharat," he added.

Subrahmanyam said while India is not a major contributor to global emissions, it is among the most vulnerable countries to climate change impacts. "That is the injustice of it," he said, adding that climate change issues nevertheless must be addressed.

"We are juggling two balls simultaneously which are rapid economic growth and net zero. No large country has attempted to grow into a developed nation while becoming clean at the same time. Others polluted first and cleaned up later. India is trying to do both together. That is unprecedented," he said.

Referring to the findings, he outlined what he called a five-point strategy or "five mantras" for India's transition.

First, electrifying energy consumption as much as possible, raising electricity's share in total energy use from about 20% today to nearly 60-65%. Second, greening the electricity supply itself. Third, managing and moderating demand through behavioural change, efficiency and initiatives such as Mission LiFE. Fourth, improving efficiency and circularity through reuse and recycling of materials and resources. And fifth, ensuring adequate financing.

"Demand management is critical. While India's economy is expected to grow seven to eight times by 2047, energy demand must rise only about two to two-and-a-half times. That's where efficiency, better technology and smarter consumption come in," he said.

He said the fossil fuel use, particularly coal, will continue to rise in the near term. "Coal consumption in India will increase until around 2050. "There will be a turn after that. This does not affect our net-zero goal for 2070."

On financing, he said India will require around USD 22 trillion to fund the energy and green transition through 2047. Of this, domestic sources may be able to provide about USD 16 trillion, leaving a gap of roughly USD 6 trillion that will need to be met through international finance, including bilateral, multilateral, public and private channels.

- ANI