Union Finance Minister Nirmala Sitharaman said on February 1 that “green growth” would be one of seven priority sectors (“Saptarishi”) in the 2023 Union Budget.

In her budget speech, she explained that the “green growth” priority sector would include programs for green fuels, green energy, green agriculture, green transport, green buildings and green equipment. This will also have policies for efficient energy use across sectors, Sitharaman said.

“These green growth efforts will help reduce the carbon intensity of the economy and provide green jobs at scale,” she said.

The announcement signifies that India will adopt a multi-pronged strategy to accelerate the development of clean, carbon-free fuels across different economic sectors. India has increased its solar capacity nearly 20-fold over the past eight years and now ranks fourth in the world in terms of renewable energy capacity.

President Droupadi Murmu touched briefly on the priority areas in her first address to the joint session of Parliament at the start of the budget session, saying the government is focusing on “green growth” and emphasising connecting the whole world with “Mission LiFE”.

Prime Minister Narendra Modi announced Mission LiFE at the climate conference in Glasgow in 2021, urging countries to replace the pervasive ‘use and dispose of’ economy with a circular economy, defined as mindful and deliberate use.

Furthermore, the announcement is significant as India is determined to achieve net zero emissions by 2070. Net zero emissions refer to reducing greenhouse gas emissions as close to zero as possible.

So far, India has achieved its target of generating 40% of its electricity from non-fossil fuels.