India Urged to Build Greener Manufacturing Economy
During a panel discussion at the AIMA (All India Management Association) Convention, T.V. Narendran, CEO and Managing Director of Tata Steel, emphasized the urgent need for India to transition to a greener manufacturing economy, one that is more sustainable than China’s.
He stressed that this transformation requires a collaborative approach, involving both the government and the private sector, to ensure swift and effective change.
Narendran highlighted that if India fails to adopt green manufacturing at a fast pace, the nation risks losing a significant market where sustainability is becoming a key competitive factor.
With an increasing global focus on carbon footprints and eco-friendly production methods, India must integrate sustainability into its industrial growth plans.
One of the critical challenges facing Indian manufactures is the European Union’s Carbon Border Adjustment Mechanism (CBAM). This mechanism, set to be implemented soon, will tax carbon emissions linked to the manufacturing of goods imported into the EU from countries like India and China.
The CBAM specifically targets energy-intensive products such as iron, steel, cement, fertilizer, and aluminum industries where India is a major player.
Narendran pointed out that without a swift transition to greener practices, Indian Industries will face heavy financial penalties under the CBAM. This, in turn, could make Indian exports less competitive in global markets, further threatening the country’s economic growth. By adopting greener manufacturing processes, India can maintain its competitive edge while meeting global environmental standards.
He called for more aggressive policy measures from the government to promote green manufacturing, including financial incentives, technology upgrades, and stringent environmental regulations. This private sector, on the other hand, must invest in cleaner technologies and sustainable practices to reduce emissions and enhance operational efficiency.
India’s green transition in manufacturing is not just a necessity for international competitiveness, but also for long- term economic sustainability. By making this shift, India can position itself as a global leader in sustainable industrial practices, creating a robust, future-proof economy that aligns with global environmental goals.