India's Green Transition: Opportunities and Challenges Ahead
Key Ideas
  • India has made significant progress in increasing its renewable energy capacity and is on track to achieve its 500 GW target by 2030.
  • The upcoming 2025 Budget presents an opportunity to establish a comprehensive tax framework that incentivizes green investments and supports the renewable energy value chain.
  • The government should consider tax incentives for sustainable investments, green technology R&D, and adoption of electric vehicles to accelerate the green transition.
  • Measures like reducing GST rates on green hydrogen, supporting infrastructure, and ensuring a just transition for workers are vital for India's shift towards a greener economy.
With the rise in global temperatures, India has been focusing on its green transition to combat climate change. The country has significantly increased its renewable energy capacity and is working towards achieving its ambitious targets by 2030. Various policies like PLI schemes and FAME have been introduced to promote electric vehicles and green manufacturing. India aims to establish a clear and comprehensive tax framework in the upcoming 2025 Budget to incentivize green investments and encourage the adoption of sustainable practices. The country advocates for climate finance at international forums to support developing nations in achieving climate goals. To boost innovation in green technology, tax incentives, and exemptions from corporate income tax are suggested. Incentives for electric vehicles, such as tax holidays and infrastructure support, are proposed to accelerate e-mobility adoption. India's National Green Hydrogen Mission aims to position the country as a global hub for green hydrogen production. Measures like reducing GST rates on green hydrogen and supporting renewable power plants are essential for achieving this mission. Additionally, a just transition plan is crucial to address job displacement in traditional sectors. The writer emphasizes the importance of a well-thought-out tax policy in Budget 2025 to propel India towards a greener future.
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