India has an aspiration of becoming Viksit Bharat by 2047 and achieving USD 30 trillion economy. This economic expansion will be driven by a significant increase in industrial activity and accompanied by extensive infrastructure development. Increasing the share of manufacturing sector from 17% to 25% in GDP is a key national objective that is central to India’s developmental goals. India has also pledged to achieve net-zero greenhouse gas emissions by 2070. Therefore, a need was identified for developing industry specific green transition roadmaps that are consistent with Viksit Bharat by 2047. In this context, NITI Aayog released three reports on decarbonisation roadmaps for cement, aluminium and MSME sectors. These three reports have been prepared in consultation with line ministries/ departments, industry stakeholders, research institutions and knowledge partners.
Cement Sector: The report highlights that cement production is likely to increase sevenfold to ~2100 million tonnes in 2070, from the level of 391 million tonnes in 2023. Under the decarbonisation strategy, the cement sector must reduce its carbon intensity from 0.63 tCO₂e per tonne of cement to approximately 0.09-0.13 tCO₂e per tonne by 2070. The report proposes to prioritize the use of refuse-derived fuels, clinker substitution, scaling up of Carbon Capture, Utilisation and Storage (CCUS) and effective implementation of Carbon Credit Trading Scheme to enable deep decarbonisation in this sector.
Aluminium Sector: Aluminium production is projected to increase from 4 million tonnes in 2023 to 37 million tonnes by 2070. The decarbonisation roadmap identifies three phased solutions – transition to Renewable Energy-Round the Clock (RE-RTC) power and enhanced grid connectivity in the short term, adoption of nuclear power in the medium term, and long-term integration of CCUS.
MSME Sector: India’s Micro, Small and Medium Enterprises (MSMEs) form the backbone of the nation’s industrial landscape, contributing nearly 30% to national GDP, employing over 250 million people and accounting for approximately 46% of exports. The Roadmap for Green Transition of MSMEs focuses on three key levers: deployment of energy-efficient equipment, adoption of alternative fuels, and integration of green electricity.
Sh. Suman Bery, Vice Chairperson, NITI Aayog observed that MSMEs are important members of domestic and international supply chains. He urged prioritizing technology adoption, access to affordable finance, skilling & regulatory reforms, and increased participation of female workforce to achieve overall competitiveness of MSMEs. Sh. B. V. R. Subrahmanyam, CEO, NITI Aayog emphasized that these roadmaps would serve as reference manuals for India to achieve its unique goal of becoming a developed country as well as decarbonising the industry simultaneously. Sh. S. C. L. Das, Secretary, MSME appreciated the broad focus of the reports and highlighted that cluster-based framework will help in effective implementation of the roadmap. Sh. Madhav Pai, CEO, WRI India recognized the timeliness of releasing these roadmaps in light of India’s developmental ambitions and climate commitments. Sh. Ishtiyaque Ahmed, Programme Director, NITI Aayog delivered a detailed presentation emphasizing that cement, aluminium and MSME sectors can be decarbonized using levers such as energy efficiency, round-the-clock renewables, CCUS and nuclear energy.