Four Transformations for Viksit Bharat

The Interim Budget was noteworthy because of its focus on sustainability. But more needs to be done. 

- SANJEEV KRISHAN

THE INTERIM BUDGET, presented on February 1, has brought to mind Prime Minister Narendra Modi’s words from around a decade ago: “I believe growth should be constant, sustained, and inclusive.” The challenge of meeting the economic and social aspirations of a population of 1.4 billion people, 65% of whom are under the age of 35, is further compounded by the growing urgency of the need to address climate change.

With a Budget that brings focus on climate investments and the green economy, the Finance Minister has steered us in the right direction, underlining India’s commitment to achieving its net zero target by 2070. Shunning populist announcements in favour of fiscal prudence and providing a significant thrust to infrastructure development and building of renewable energy capacity, this pre-election Interim Budget seeks to propel economic growth while ensuring equitable participation and social progress. However, to realise its agenda, India needs to focus on four transformations.

Energy Transition

India plans to meet 50% of its electricity requirements from nonfossil fuel sources. This would entail increasing our current installed renewable capacities from around 181 GW to 500 GW. The Budget commits to viability gap funding (VGF) to set up 1 GW of offshore wind capacity. Offshore wind provides better efficiencies, although at higher costs, and provides a massive opportunity to leverage India’s 7,600 km of coastline. This is expected to attract capital and skills from Europe, which leads the world in offshore capacities and has been vocal in its commitment to collaborate with India in this space.