Mumbai: The first budget of the new Narendra Modi government has signalled policy continuity in most areas of the economy and reflects India’s commitment to sustainable development with significant allocations.
"The Budget 2024-25 reflects India’s commitment to sustainable development with significant allocations like Rs 1.52 lakh crore for climate-resilient agriculture and the introduction of initiatives like the PM Surya Ghar Muft Bijli Yojana for rooftop solar. The focus on critical minerals, a policy for pumped storage projects and the decision to develop a policy document on energy transition pathways is laudable too. However, what remains to be seen is how the role of nuclear power in India’s energy mix takes shape,” said Aarti Khosla, Director, Climate Trends.
“It addresses not only India’s clean energy ambitions (with a focus on rooftop solar and pumped hydro storage) but also outlines actions on water treatment, air quality, and recovery from riverine floods," said Dr Arunabha Ghosh, CEO, Council on Energy, Environment and Water (CEEW).
He added, "In parallel, it targets the broader implications of India’s green industrialisation, how MSMEs—the backbone of India's industry—will transition, and the importance of a Critical Mineral Mission. These elements are peppered through, but looked at together they form a significant push for a greener economy. Each of these provisions—from clean energy markets, to green industry, to quality of life—can benefit from a focus on loss prevention from climate events, promoting new business models for households and small industry, a circular economy of resources, and innovative financing beyond budgetary support.”
“The budget announcements that clearly mention the establishment of a carbon market, taxonomy and transition pathways mark significant progress in planning towards Net Zero in 2070,” points out Suranjali Tandon, Associate Professor, National Institute of Public Finance and Policy.
“I welcome this budget because it has made significant allocations for some components of climate change. For example, developing a taxonomy for climate finance to help improve the funds for adapting to climate change and also reducing greenhouse gas emissions. This will support in achieving the country’s climate commitments and also achieve the changes needed on ground. The budget also focuses on important areas such as climate resistant seed varieties distribution, scaling up the digital public infrastructure and natural farming, which will improve the farm level productivity,” said Dr Anjal Prakash, Associate Professor (Research) and Research Director at the Bharti Institute of Public Policy at ISB.
The Council on Energy, Environment and Water analysis suggests that more than 64 per cent of tehsils in India have seen an increase in the frequency of heavy rainfall days in the last decade, compared to the previous three decades. “Hence, the emphasis of the Union budget 2024 on flood mitigation in vulnerable states like Sikkim, Assam, Bihar, Uttarakhand and Himachal Pradesh is a welcome step. Further, there is a need for increased focus on developing city-specific action plans to manage flood risk,” said Nitin Bassi, Senior Programme Lead, CEEW.
Key climate mitigation measures in budget:
- Govt will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability
- Pumped Storage Policy to be brought out for electricity storage and integration of renewable energy in the overall energy mix
- Roadmap for ‘hard to abate’ industries to be formulated for transition from ‘Perform, Achieve and Trade’ to ‘Indian Carbon Market’ mode
- Budgetary allocation for the National Green Hydrogen Mission increased to Rs 600 crore from the revised estimates of Rs 100 crore in 2023-24.
- Through this Budget announcement, India has also started to action on its commitments for G20 last year to build reliable, diversified, sustainable and responsible supply chains of critical minerals.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.