How NITI Aayog’s Green Roadmap Puts India’s MSMEs at the Heart of Viksit Bharat 2047

As India looks ahead to its centenary year of independence, the ambition is clear and unapologetically bold: a Viksit Bharat by 2047 and a USD 30 trillion economy. But beneath the headline numbers lies a deeper question—how can the country grow rapidly without locking itself into a high-carbon future? The answer, policymakers believe, rests significantly with India’s vast network of micro, small and medium enterprises.

In a decisive step towards aligning economic expansion with climate responsibility, NITI Aayog has released a Roadmap for Green Transition of MSMEs, alongside sector-specific decarbonisation reports for the cement and aluminium industries. Together, these documents offer a pragmatic blueprint for transforming India’s industrial backbone while staying on course for long-term climate commitments.

Why MSMEs Matter More Than Ever

India has set two seemingly parallel but interconnected goals: increasing the share of manufacturing in GDP from 17 per cent to 25 per cent, and achieving net-zero greenhouse gas emissions by 2070. With industrial output and infrastructure expected to scale up dramatically, the need for a structured green transition has become unavoidable.

The MSME sector sits at the heart of this challenge—and opportunity. Accounting for nearly 30 per cent of India’s GDP, employing over 250 million people, and contributing around 46 per cent of national exports, MSMEs are not just economic contributors; they are enablers of livelihoods and global competitiveness. Any serious climate strategy, policymakers argue, must therefore bring MSMEs into the centre of the transition.

A Practical, Business-First Green Roadmap

Unlike one-size-fits-all climate frameworks, the MSME Green Transition Roadmap is designed with ground realities in mind. Recognising the diversity and scale of the sector, the roadmap focuses on three actionable levers that balance sustainability with profitability:

• Deployment of energy-efficient technologies to cut operational costs

• Adoption of cleaner and alternative fuels to reduce emissions intensity

• Integration of green electricity, particularly renewable energy, into daily operations

The emphasis is firmly on scalable and implementable solutions, especially at the cluster level. By adopting green measures collectively, MSMEs can lower upfront costs, access shared infrastructure, and unlock new financing opportunities—making sustainability a business advantage rather than a compliance burden.

Policy, Finance and People at the Core

Underscoring the strategic role of MSMEs in domestic and global supply chains, Suman Bery, Vice Chairperson of NITI Aayog, stressed the need to look beyond technology alone. He highlighted the importance of affordable finance, skilling, regulatory reforms, and greater female workforce participation to strengthen resilience and competitiveness across the sector.

From an implementation standpoint, S. C. L. Das, Secretary, Ministry of MSME, welcomed the roadmap’s broad and inclusive approach. He pointed to the cluster-based framework as a key enabler, allowing enterprises to move faster and more efficiently by sharing resources, infrastructure, and institutional support.

Part of a Larger Industrial Decarbonisation Push

The MSME roadmap is not a standalone exercise. It forms part of a wider set of decarbonisation strategies released by NITI Aayog for high-emission sectors such as cement and aluminium. While those sectoral reports lay out long-term pathways using tools like renewable energy, alternative fuels, and Carbon Capture, Utilisation and Storage (CCUS), the MSME roadmap remains deliberately flexible—acknowledging the sector’s heterogeneity and varied starting points.

Development and Climate Must Move Together

Framing the roadmaps as guiding manuals for India’s future, B. V. R. Subrahmanyam, CEO of NITI Aayog, reiterated that economic development and decarbonisation cannot be sequential goals. “They must advance together,” he emphasised, if India is to achieve sustainable prosperity.

Echoing this view, Madhav Pai, CEO of WRI India, described the timing of the roadmap as critical. With global value chains increasingly shaped by sustainability standards, early action by MSMEs, he noted, could significantly enhance India’s export competitiveness while reducing emissions.

Adding technical depth to the discussion, Ishtiyaque Ahmed, Programme Director at NITI Aayog, outlined how sectors like MSMEs, cement and aluminium can achieve deep decarbonisation through a mix of energy efficiency, round-the-clock renewable energy, CCUS, and in the longer term, nuclear power.

A Clear Signal for Viksit Bharat 2047

With the release of the MSME Green Transition Roadmap, NITI Aayog has sent a clear signal: India’s journey to becoming a developed nation will be powered not just by scale, but by sustainability. By placing MSMEs at the centre of climate action, the roadmap seeks to ensure that growth remains inclusive, competitive and future-ready—fully aligned with the vision of Viksit Bharat 2047.