Industry expects increased impetus on innovation and sustainability from the new government

Following the results of the General Elections, in which the BJP fell short of a majority but crossed the halfway mark with its allies, BJP leader Narendra Modi is expected to be sworn in for a third consecutive term as Prime Minister on June 8. In his address on June 4, he remained steadfast in his pre-election pledges. Modi reiterated his commitment to advancing the agenda set forth during his last two terms. Acknowledging the perils of climate change, he reiterated India’s commitment to increasing investment in green industrialisation. He said, “Be it green energy or green mobility, we will take India to the forefront.”

As India waits for the new government to be sworn in, industry experts are united in their expectations from the new government to bolster India’s ambitious sustainability goals and net-zero targets.

“India’s new government has a unique opportunity to make the climate ambition a reality through progressive steps encouraging sustainable practices,” says Viral Thakker, Partner and Climate Change & Sustainability Leader, Deloitte South Asia. “As climate challenges escalate all around us and business leaders feel the pressure (61% of CxOs in India said climate change will have a high or very significant impact on their organisation’s strategy and operations over the next three years), it’s imperative to act and promote accountability. Building on past initiatives that prioritised green and eco-friendly approaches, the nation will look to the new regime for an increased impetus on innovation and sustainability that will lay the foundation for our future as a $35 trillion economy (by 2047).”

India has committed to achieving net zero goals by 2070, for which industries would require a consistent and long-term policy environment to make confident investment decisions in sustainable practices. A clear roadmap towards net-zero emissions by 2070, with minimal policy volatility, will help mitigate uncertainty and encourage proactive engagement from businesses.

Sameer Jain, MD, Primus Partners, told Business Today, “Industries are looking for economic support in the form of tax breaks, subsidies, and grants. These incentives are particularly important during the initial stages of adopting sustainable technologies. Recent budgetary demands for subsidies on green technologies and tax breaks on electric vehicles underscore this need.” He adds, “Developing a robust green infrastructure network, including smart grids for renewable energy and efficient recycling systems, is essential. Industries in sectors such as electric vehicles and waste management will greatly benefit from such advancements, making sustainable operations more viable.”

Funding for renewable energy projects, carbon capture technologies, and sustainable materials can propel industries towards greener practices. And to drive innovation in clean technologies, government investment in R&D is critical.

To achieve the country’s sustainable future, the new government can use India’s strength in technology. Namrata Rana, Partner, National Head ESG, KPMG in India, told Business Today, “a crucial component of sustainable growth needs to be the India stack for sustainability. A technology-first and sustainability-ready digital infrastructure that helps manage ecosystems, energy needs, waste, and water resources. The new Indian government can use India’s strengths in technology and an intrinsic understanding of digital innovation and circularity to show what a sustainability-first economy really looks like. Artificial intelligence and different tenets of sustainability can both be harnessed for a greener and yet more prosperous India.”

In addition, the new government should also aim at educating consumers about the benefits of sustainable products that can create market demand, driving industries to prioritise sustainability, investing in skilling programmes to support the green economy, and more. All this can help India achieve its sustainable development goals, along with net zero, while ensuring a more sustainable future for both businesses and the environment.