Economic Survey 2023-24: Balancing growth and green goals a tightrope walk for India

Economic Survey on sustainability: India's journey towards sustainable development is fraught with challenges, as the country contends with the dual imperatives of meeting rising energy demands and reducing carbon emissions, according to the Economic Survey 2023-24 presented on Monday.

The Survey, tabled in Parliament, underscores the complexities of India's green transition, underlining the necessity of a diversified energy portfolio to achieve ambitious growth targets while adhering to climate commitments.

"Balancing development needs with a low-carbon pathway is a tightrope, especially when financed predominantly through domestic resources," the Survey noted, highlighting the financial strain of pursuing cleaner energy alternatives.

The document stressed the critical role of non-fossil fuel sources in meeting India's Nationally Determined Contributions (NDCs) and Net Zero goals. However, it also pointed out the challenges associated with renewable energy, including intermittency issues, waste management concerns for nuclear and solar technologies, and the potential impact of biofuel production on food security.

Acknowledging the importance of energy security, the Survey advocated for a multi-pronged approach. It suggested diversifying energy sources, including renewables, nuclear, and biofuels; continuing reliance on thermal power, particularly coal, to provide baseload support for renewable deployment; promoting clean coal technologies like gasification and carbon capture; and enhancing international cooperation in R&D for emerging green technologies.

The Survey cautioned against over-reliance on imports, noting that while India's dependence on petroleum imports is well-known, the shift to renewable energy could lead to new vulnerabilities in the supply chains for solar panels and critical minerals.

On a positive note, the report highlighted India's significant progress in its mission-mode approach to addressing climate change. As of May 31, 2024, the share of non-fossil sources in installed electricity generation capacity has reached 45.4 per cent, putting India on track to meet its updated NDC target of 50 per cent by 2030.

The Survey called for a "more balanced approach" to climate change, suggesting policymakers focus on "nearer-term policy goals of improving human welfare" rather than being "excessively preoccupied" with long-term global climate management.

While acknowledging India's achievements, the Survey emphasized the need for financial support from developed countries. With financing needs estimated at $2.5 trillion (at 2014-15 prices) to meet NDC targets by 2030, access to finance and technology at reasonable costs is crucial to ease resource constraints.

(With PTI inputs)