The Economic Survey 2024-25, presented by Finance Minister Nirmala Sitharaman on January 31, 2025, outlines India's commitment to achieving net-zero emissions by 2070. This ambitious plan is intricately linked to sustainable growth and energy security, yet it faces significant challenges due to financial constraints and insufficient international climate support.
India aims to transform itself by 2047, establishing inclusive and sustainable development as its core principle. The survey emphasizes the need for extensive investments in grid infrastructure and the secure sourcing of key minerals to facilitate the country's transition to renewable energy. Despite its position as one of the lowest per capita contributors to carbon emissions, India continues to struggle with the financial support it receives from developed nations, which falls significantly short of what is necessary. According to the survey, the shortfall amounts to between $5.1 and $6.8 trillion needed by 2030, leaving developing countries like India grappling with inadequate resources to meet their climate goals.
One of the standout proposals from the survey is India's National Adaptation Plan (NAP), which is being formulated to promote climate resilience across various sectors and regions. The multi-faceted approach suggested includes investing heavily in infrastructural resilience, developing sector-specific strategies, and advancing research and development initiatives. The survey notes, "The funding shortfall may lead to reworking of climate targets," pushing India to possibly adjust its ambitions for its climate action plan due by 2035 under the Paris Agreement.
The Economic Survey indicates growing urgency by advocating for adaptation measures over emissions reduction, with specific recommendations such as developing climate-resilient seeds, enhancing urban resilience, and sustaining mangroves along coastlines. It points out, "Vulnerable developing countries like India bear the disproportionate burden of climate change." Therefore, adaptation is not only necessary but urgent for the livelihoods and economy of those affected.
Notably, the push for vertical gardens or living walls, included as part of India’s urban planning strategy, showcases innovative solutions to tackle air quality degradation, carbon sequestration, and urban heat. The survey suggests integrating these solutions within India's Energy Conservation and Sustainable Building Code (ECSBC).
Despite significant progress—nearly 47% of India's electricity generation capacity now stems from non-fossil sources—the country faces hurdles such as limitations in energy storage technologies and restricted access to raw materials. The survey highlights the need to balance energy transition’s demands with energy security by promoting advanced coal technologies, such as supercritical and ultra-supercritical plants to cut down emissions.
At the same time, nuclear energy is put forth as a potential high-efficiency, low-emission energy source, recommending its expanded use as the country moves closer to its targets. The urgency to effectively manage waste from renewable energy technologies is also accentuated, aiming to mitigate any adverse environmental impacts it may have.
Marching forward, reports indicate India has made substantial strides in terms of its Nationally Determined Contributions (NDC). The objective is to reach the target of having at least 50% of its installed electricity from non-fossil fuel sources by 2030. The government’s initiatives, such as Mission LiFE (Lifestyle for Environment), encourage mindful consumption and sustainability practices among citizens, amplifying grassroots efforts toward climate action.
The survey expresses disappointment with the outcomes of last year’s COP29 climate conference, pointing out the promise of merely $300 billion annually for climate finance—a stark deviation from the more than $1 trillion needed yearly to tackle the climate crisis efficiently. It states, "The decision demonstrates significant misalignment with the Paris Agreement's mandate to progress beyond previous efforts by developed countries."
With the lack of commitment from developed countries manifesting through their failure to meet national goals, it is suggested such financial inadequacies could compel developing nations to reassess their climate targets, potentially lowering expectations for ambitious actions. The inadequacy forces India, as one of the world’s most climate-vulnerable nations, to tailor its strategies to appeal more toward adaptation.
The Economic Survey presents recommendations for these adaptive pathways, including enhancing preparedness for extreme weather, investing more heavily in urban resilience, and fostering innovative agricultural practices to withstand climatic shifts.
Looking toward COP30 set to take place later this year, the words of the Economic Survey resonate loudly as it sets forth the clear message of the need for political will among developed nations to deliver their climate finance commitments. The call for reform, especially within domestic public policies to redirect focus toward building resilience, is timely as India stands on the brink of not only meeting but potentially exceeding its targets.
India’s challenges remain, particularly amid shifting global financial commitments, but through calculated adaptation and growth strategy, the country aims for a dual focus: to sustain its economy and progress toward climate resilience, fortifying its position as it prepares for the international climate action plan submission for 2035. By bridging the gap between ambition and reality, India's climate narrative continues to evolve amid the pressing need for comprehensive strategies to combat climate change effectively.