India stands at a pivotal moment in its development journey 鈥� one where climate ambition and economic growth are converging. With a net-zero goal set for 2070 and growing momentum around renewable energy, sustainable infrastructure, and green finance, the challenge now is to ensure this transition is not only environmentally sound but also inclusive in spirit and execution.
Tier-2 and Tier-3 cities, tribal regions, and aspirational districts, which together form the heart of Bharat 鈥� are uniquely positioned to become active participants in this shift. These regions are not just end-users of climate policy; they are potential engines of green enterprise, clean energy, and low-carbon innovation tailored to local contexts. A just transition in India must therefore enable Bharat to lead, not lag.
Small businesses, or MSMEs, are already playing a central role in this effort. Contributing nearly 30 per cent of India鈥檚 GDP and employing over 120 million people1, these enterprises are increasingly aware of the value of sustainability 鈥� whether in improving resource efficiency, tapping into green markets, or attracting climate-conscious capital. The Small Industries Development Bank of India (SIDBI) expanded its Green Finance Scheme, offering concessional loans to MSMEs adopting renewable energy, sustainable buildings, and waste management solutions2. These efforts are helping unlock climate-aligned growth across industrial clusters in smaller towns.
The momentum is equally visible in the workforce. According to the Council on Energy, Environment and Water (CEEW), India鈥檚 clean energy sectors added 52,700 new workers in FY22 alone 鈥� a nearly eightfold increase from the previous year. Over 164,000 people now work in solar and wind energy roles, and nearly 100,000 have been trained specifically for renewables through the Skill Council for Green Jobs3. What鈥檚 promising is that many of these opportunities are rooted in non-metro areas, offering a pathway to green livelihoods that are locally anchored and future-ready.
Decentralised Renewable Energy (DRE) solutions are also playing a transformative role 鈥� powering rural livelihoods, small businesses, and community infrastructure. Solar rooftops, mini-grids, and clean cooking solutions are no longer pilots; they are becoming part of everyday life in parts of Odisha, Chhattisgarh, and Jharkhand. According to CEEW鈥檚 Powering Livelihoods initiative, over 50 per cent of rural enterprises could improve profitability through DRE adoption 鈥� a strong case for scaling these models nationally4.
Importantly, many state and local governments have begun mainstreaming equity in their climate action plans. From Odisha鈥檚 climate-resilient infrastructure projects to Himachal Pradesh鈥檚 livelihood-linked forestry programs, the emphasis is shifting from 鈥榤itigation alone鈥� to co-benefits that matter to local communities: jobs, energy access, waste solutions, and resilience. This approach is aligned with the Ministry of Environment, Forest and Climate Change鈥檚 2022 Long-Term Low Emission Development Strategy (LT-LEDS), which calls for decentralised, just, and inclusive climate pathways.
That said, continued progress requires a few strategic enablers. First, enhancing data at the district and sub-district level to map local emission sources, vulnerabilities, and enterprise potential. Second, building local institutional capacity 鈥� from Panchayati Raj Institutions to District Skill Committees 鈥� to implement green programs effectively. And third, crowding in climate finance to underserved regions via blended finance, credit guarantees, and targeted de-risking tools.
India鈥檚 green transition is not a story of catch-up 鈥� it is a story of co-creation. And for it to succeed, Bharat must be at the centre. The levers are already in motion: MSMEs are adapting, youth are getting skilled, and communities are embracing decentralised solutions. The task ahead is to build on this foundation 鈥� to ensure that sustainability becomes not just an environmental imperative, but a developmental multiplier. In the end, the true measure of success will lie in whether India鈥檚 transition is not merely green, but genuinely just.
