PHDCCI recommends green economy boost in Union Budget 2024-25 for sustainable growth

Budget 2024: As the nation eagerly awaits the Union Budget for 2024-25, the PHD Chamber of Commerce and Industry has put forth comprehensive recommendations to foster a green economy, aligning with global efforts toward environmental consciousness. The focus on sustainability and inclusive growth in the proposed interventions could reshape India's economic landscape.

The concept of a green economy, as defined by the Chamber, is low-carbon, resource-efficient, and socially inclusive. Acknowledging the global shift towards environmental responsibility, India's stance on the green economy was reinforced by initiatives launched in the Union Budget for 2023-24.

Key initiatives outlined in the previous budget include the Green Hydrogen Mission, the expansion of renewable energy capacity, ethanol blending in petrol, and a significant emphasis on battery energy storage systems. These steps underscore India's commitment to reducing dependence on fossil fuels and accelerating green growth.

To ensure energy security for farmers, initiatives like PM KUSUM and the GOBARdhan Scheme have been emphasised, along with the Vehicle Scrappage Policy to reduce pollution and promote clean vehicle adoption. Additionally, measures like PRANAM encourage natural farming, and the Green Credit Program incentivises environmentally sustainable actions.

The PHD Chamber's recommendations for the upcoming budget include strategic interventions to propel India towards green growth and sustainable development. These interventions encompass integrating environmental sustainability into decision-making processes, addressing data gaps, mobilising finance from various sectors, initiating pilot projects, focusing on capacity building, and understanding emerging socio-economic transitions.

The adoption of green budgeting is highlighted as a powerful approach to embedding environmental considerations in decision-making. Addressing data gaps through streamlined data collection processes, mobilising finance beyond public sources, initiating pilot projects in areas like renewable energy and waste management, and fostering capacity building are crucial components of the proposed interventions.

Moreover, the recommendations emphasise the need for a comprehensive understanding of emerging socio-economic transitions, including urbanisation and shifts in economic structures. Prioritising skill development and vocational education are deemed critical to creating a workforce well-equipped to seize opportunities in key green growth-related sectors.

The successful execution of these interventions, as suggested by the PHD Chamber, holds the potential to reshape India's economic landscape, promoting sustainable and ecologically responsible growth for years to come.