Budget 2024: PHDCCI lays out green economy roadmap in pre-budget recommendations

The PHD Chamber of Commerce and Industry (PHDCCI) has put forward a detailed plan to boost India's green economy in its pre-budget recommendations for 2024-25. This proposal aligns with the Indian government's initiatives introduced in the Union Budget for 2023-24, focusing on fostering a low-carbon, resource-efficient, and socially inclusive economy.

The recommendations follow the government's comprehensive plan, as announced by the Finance Minister Nirmala Sitharaman, to accelerate green growth in India. Key components of this plan include the Green Hydrogen Mission, an expansion in renewable energy capacity, a shift towards ethanol blending in petrol, and a focus on battery energy storage systems.

In a significant step towards green mobility, the budget has exempted customs duties on machinery for lithium-ion cell manufacturing. Initiatives like PM KUSUM and the GOBARdhan Scheme have been introduced to ensure energy security for farmers and to harness the potential of biogas. Furthermore, the Vehicle Scrappage Policy and the PRANAM initiative aim to reduce pollution and promote natural farming, respectively, aligning with India's goal of achieving net-zero carbon emissions by 2070.

Sanjeev Agrawal, President of PHDCCI, emphasized the importance of integrating environmental sustainability into government decision-making. "Integrating environmental sustainability into the very core of decision-making processes is imperative to propel India towards a future of green growth and sustainable development," he said. Agrawal also highlighted the significance of green budgeting, where government departments prepare environmental budget statements to showcase their green initiatives.

The PHDCCI's recommendations also address the need to fill data gaps through existing management information systems, mobilize finance beyond public funding, and initiate pilot projects in renewable energy and waste management. These pilot projects are deemed crucial for demonstrating and scaling sustainable technologies.

Additionally, the PHDCCI underscores the importance of capacity building in financial, technical, and institutional sectors and calls for a comprehensive understanding of socio-economic transitions. This includes preparing for urbanization, adapting to changes in economic structures, and prioritizing skill development in sectors crucial for green growth, such as renewable energy, construction, and industry.

These measures, as recommended by the PHDCCI, are expected to significantly reshape India's economic landscape, steering the country towards sustainable and ecologically responsible growth in the coming years.