NITI AAYOG REPORT ON VIKSIT BHARAT AND NET ZERO

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Picture Courtesy:  PIB

 Context

NITI Aayog released 11 reports outlining pathways for India to become a $30 trillion developed nation (Viksit Bharat) by 2047 and achieve Net Zero emissions by 2070.

What are the Key highlights of NITI Aayog's "Viksit Bharat and Net Zero" Report?

Reports predict major structural changes in Indian economy, demography, and energy, with a core shift from a consumption-led to an investment-driven economy.

The Energy Transition Blueprint

The transition to Net Zero is anchored in four key pillars: massive electrification, scaling up renewables and nuclear power, and phasing down fossil fuels with carbon capture technology.

Electrification as the Core: Electricity's share in final energy demand is set to triple by 2070, driven by the adoption of Electric Vehicles (EVs), electric cooking, and industrial heat pumps.

Renewable Energy Expansion: Solar and Wind capacity will need to scale from 164 GW in 2025 to over 6,000 GW by 2070.

Strategic Role of Nuclear Energy: Nuclear power capacity projected to expand from 8 GW to over 300 GW by 2070.

Phasing Down Fossil Fuels: Share of fossil fuels will reduce. Remaining usage in hard-to-abate sectors will depend on Carbon Capture, Utilisation, and Storage (CCUS) technology.

What are Challenges for India in Achieving Viksit Bharat and Net Zero?

The Financial Gap

Transition to net zero requires a cumulative investment of USD 22.7 trillion by 2070 (approx. USD 500 billion annually). Given current annual investments of USD 135 billion, there is a huge financing gap of USD 6.5 trillion requiring international capital.

Critical Mineral Security

India is heavily dependent on imports for Critical Energy Transition Minerals (CETMs) like Lithium, Cobalt, and Nickel, which are essential for EV batteries.

Technology Readiness

Key technologies like CCUS, Long-duration Energy Storage, and Small Modular Nuclear Reactors are still nascent and not yet proven at scale in India.

Infrastructure "Lock-in" Risk

Since 86% of the 2070 building floor space is yet to be built, there is a major risk of locking in high energy demand unless green building codes and super-efficient appliances are immediately mandated.

Just Transition Imperative

Over 150 districts are dependent on the fossil fuel economy. The transition will require massive reskilling and social protection for the 17 million workers in these sectors.

Water-Energy Nexus

Nearly 75% of India's renewable energy capacity is located in water-stressed states, creating potential conflicts between energy generation and water conservation.

Way Forward for India to achieve Viksit Bharat and Net Zero 

Mainstream Behavioural Change

Systematically integrate Mission LiFE (Lifestyle for Environment) to moderate energy demand through sustainable consumption, public transport, and circular economy principles like Extended Producer Responsibility (EPR).

Strengthen Urban Mobility

Prioritize Transit-Oriented Development (TOD) by integrating land use with public transport (rail, metro) to reduce travel demand, rather than just replacing private cars with EVs.

Adopt a Green Industrial Policy

Use blended finance and public procurement to de-risk investments in emerging green technologies like Green Hydrogen and low-carbon cement.

Build Resilient Supply Chains

Enhance domestic exploration for critical minerals and empower institutions like KABIL (Khanij Bidesh India Ltd.) to acquire strategic overseas assets.

Implement a Just Transition Framework

Utilize funds like the District Mineral Foundations (DMF) and the Skill India Mission to finance reskilling and provide social safety nets for workers shifting from fossil fuel industries.

Strengthen Climate Finance Architecture

Establish a National Green Finance Institution and develop a unified Climate Finance Taxonomy to attract foreign capital and bridge the investment gap.

Leverage Digital Public Infrastructure

Create interoperable digital platforms for energy services, similar to UPI, such as a Unified Energy Interface (UEI) for EV charging, to enhance efficiency and accessibility.

Conclusion

NITI Aayog views India's Net Zero transition as a major developmental opportunity, not just an environmental duty. By blending economic growth with sustainability, India can create a new "Indian Development Model" for the Global South.  

Source: PIB