Key Points

The power, industry, and transport sectors, which contribute nearly 90 per cent of India’s CO2 emissions, are central to the decarbonisation drive.

"While policy support for renewable energy, Green Hydrogen, and electric vehicles is in place, the report flags a pressing concern, the nation's substantial reliance on imports, ranging between 20 per cent and 90 per cent, for critical components like solar PV modules, battery storage, and advanced wind turbine parts," credit rating agency ICRA said in its report.

It highlighted that persisting with this import dependency, while scaling up to meet 2030 targets, could result in nearly 70 per cent of the capital investment for these sectors flowing to global manufacturing hubs.

The NMM, launched to bolster domestic clean technology production, is noted as a pivotal step to address this challenge. The mission's alignment with India's nationally determined contributions (NDC) and its focus on onboarding MSMEs and startups are viewed as foundational to its strategy.

Early progress is evident, with the Union Budget 2025-26 allocating 10 per cent of the mission's total outlay and over 500 MSMEs and startups onboarded until August this year, the report said.

ICRA noted that the mission's successful execution is paramount, with the potential to deliver three significant outcomes: the NMM can significantly reduce import dependency, enhance employment generation within the cleantech sector, and position India as a leading exporter of clean technology solutions.

The report emphasised that effective implementation will be key to leveraging domestic strengths, thereby not only securing the domestic supply chain but also establishing a competitive position in the global cleantech market.

- IANS