The Union Budget 2024-2025 of India marks a significant step toward balancing economic growth with environmental sustainability based on the Govt. of India’s vision of “Viksit Bharat” by 2047. As the country navigates the challenges of climate change, energy transition, and sustainable development, this budget introduces several measures aimed at fostering a greener and more sustainable future. India’s commitment to climate action is also reflected in the budget’s focus on climate finance. Carbon emissions intensive industries will soon need to switch from energy efficiency targets to emission-based targets, according to the government. The objective of transitioning from the Performance, Achieve and Trade (PAT) scheme to the Indian Carbon Market is to improve transparency, guarantee market stability, and enforce strict performance standards. These initiatives are crucial for meeting India’s international climate commitments under the Paris Agreement. The budget also addresses the need to preserve India’s rich biodiversity. Funds have been allocated for the conservation of forests, wildlife habitats, and marine ecosystems. The budget supports initiatives aimed at promoting eco-tourism and community-based conservation, ensuring that environmental protection goes hand-in-hand with economic development.
The Union Budget underscores India’s commitment to transitioning towards renewable energy sources. The allocation of funds for renewable energy such as solar power projects (through Pradhan Mantri Suryodaya Yojna), wind energy, and green hydrogen initiatives has been significantly increased from ₹7,848 crore in FY2023–24 to ₹19,100 crore in FY2024–25. This reflects the government’s strategic intent to reduce the nation’s carbon footprint and lessen its dependence on fossil fuels. The budget also provides incentives for private sector investment in renewable energy, which is expected to accelerate the adoption of cleaner technologies. In line with global trends, the budget places a strong emphasis on electric vehicles (EVs) and sustainable transportationFor creation of renewable energy and EV components, the Govt. has emphasised production critical minerals domestically, recycling them, and purchasing critical mineral assets abroad and to do so, Critical Mineral Mission will be established. The budget also emphasizes the importance of a circular economy, which aims to minimize waste and make the most of resources. Initiatives to promote recycling, waste-to-energy projects, and the use of sustainable materials in manufacturing have been included. These measures are designed to reduce the environmental impact of waste and encourage the efficient use of resources. Water supply, sewage treatment and solid waste management projects for 100 large cities will not only bring equity and equality but also will reduce the load of pollutant of the water bodies around these 100 cities. Focus on critical minerals , pump storage plant for energy storage, roadmap for hard to abate sectors and Bharat small reactors are much needed and welcome steps for decarbonisation.
Agriculture, a cornerstone of India’s economy, is also a major contributor to greenhouse gas emissions. Recognizing this, the budget introduces measures to promote sustainable agricultural practices. A comprehensive evaluation of the agricultural research system will be carried out to increase agricultural productivity and develop crops that are climate resilient. 32 field and horticultural crops will also see the introduction of 109 new, high-yielding, climate-resilient types for cultivation. Water scarcity is a critical issue in India, where agriculture sector accounts for the most use of ground water resources, and the budget recognizes the need for sustainable water management. Significant allocations have been made for water conservation projects, irrigation efficiency, and the rejuvenation of rivers and lakes. The government’s focus on water security is crucial for sustaining agriculture, industry, and communities in the face of changing climate patterns.
Urbanization in India is accelerating, leading to increased pressure on infrastructure and natural resources. The budget addresses this by allocating funds for the development of green infrastructure, including sustainable urban transport, waste management systems, and energy-efficient buildings. The focus on smart cities and sustainable urban planning is intended to create cities that are not only liveable but also environmentally sustainable. The government recognises importance of the private sector is to promote innovation and making scientific discoveries more marketable and will thus established a financing pool of ₹1 lakh crore to support these initiatives. The goal of government funding is to spur the creation of new products and technology by establishing favourable conditions for private sector involvement and by offering significant financial support. It is anticipated that this endeavour would close the knowledge gap between academia and business, promoting a stronger and more vibrant R&D ecosystem..The budget also addresses the need of logistics infrastructure to reduce the logistics cost and sets a path for leading logistics and supply chain powerhouse with global standards. Investment in logistics will make Indian companies cost competitive beyond the factory boundary and will also impact positively on reducing the vehicular pollution.
The “Purvodaya” plan of Govt. for all round development of eastern states will help the state of Odisha by providing development of human resources, infrastructure and business prospects and support for Odisha’s tourism, temple, beach, and handicraft industries. The budget will provide sustained endeavours to for all round development of Odisha in all areas including agriculture with crops of climate resilient varities, employment and skilling upgradation, women led development, critical minerals, MSME, urban development, energy security and tourism.
The Union Budget 2024-2025 of India reflects a comprehensive approach to sustainability, integrating environmental concerns with economic policies. By prioritizing renewable energy, sustainable agriculture, electric mobility, green infrastructure, and climate finance, the budget sets the stage for India to emerge as a leader in sustainable development. However, the effectiveness of these measures will depend on their implementation and the ability of various stakeholders, including the government, private sector, and civil society, to collaborate effectively. The budget’s focus on sustainability not only aligns with global trends but also addresses the unique environmental challenges facing India, making it a crucial step towards a greener and more sustainable future.
The author is Chair, Odisha State Council
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