Industries: Key to Self-Reliance & Net Zero

India's industrial sector is one of the largest contributors to economic growth, accounting for ~30% of GDP. It also contributes 30-35% of India's GHG emissions. Heavy industries such as steel, cement, chemicals, refineries, and fertilizers continue to rely heavily on coal and fossil fuel based thermal processes. However, the sector is entering a transition phase driven mainly by export competitiveness pressures, carbon-conscious global supply chains, and increasing renewable energy penetration.

Share of emissions 30%

Sources: Our world in Data, IECC, Niti Aayog
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Why India?

Economic Opportunity

India is the second largest steel and cement producer in the world, with a projected market value exceeding 200 Bn USD by 2030.

Geopolitical & Climate Risk

India's industrial sector is already contributing closer to 2% of the total global GHG emissions today. Indian industry also depends heavily on imported fuels (~40%)

Policy Tailwinds

  • EU's Carbon Border Adjustment Mechanism (CBAM) for export oriented sectors
  • ESG disclosure requirements, and green procurement standards

Stakeholder Ecosystem

Customers

  • Large industrial domestic groups like Tata, JSW, UltraTech, Reliance, Adani, and Mahindra
  • Global corporates with Indian presence for specialty chemicals, pharmaceuticals, textiles, food & beverage
  • More than 70 million MSMEs

Policy Makers & Regulators

  • Ministry of Steel, Ministry of Power, Ministry of Heavy Industries
  • Ministry of Environment Forest & Climate Change
  • Central Pollution Control Board
  • State Governments & Pollution Control Boards
  • Bureau of Energy Efficiency (BEE)

Key Challenges

Decarbonization dual challenge

The balancing act of decarbonization will be maintaining rapid industrial growth while significantly reducing emissions intensity.

Fragmentations

MSMEs remain a large untapped market due to fragmented structures and financing barriers.

Path Ahead

NDC Target for 2035

  • 47% reduction in emissions intensity (vs 2005)

Digital & AI Revolution

Green H2 (5 Mn Mt), RE (500 GW) by 2030 Increasing low-cost RE electricity making electrification the easiest routes for decarbonization, especially for low- and medium-temperature industrial processes. Heavy industries would gradually integrate other transition technologies, though large-scale deployment will take time due to cost and infrastructure constraints.

Find out opportunities with Industries sector

Opportunities Arrow Right

Industries: Solution Landscape

Commercially Scaling

Opportunities with solutions reaching commercial parity, need capital to scale.

  • Industrial electrification (RE, RE plus storage)
  • Industrial energy efficiency retrofits
  • Waste heat recovery and utilization

Applied Innovation

Opportunities with solutions available but need engineering, business model or financial innovation

  • Low-carbon fuels (biofuels, hydrogen, methanol)
  • Digital optimization
  • Thermal storage
  • Circular economy infrastructure
  • High temperature heat pumps (above 175°C)
  • Carbon capture and storage

Fundamental R&D

Opportunities where solutions only exist in labs/pilots, or are yet to be invented

  • Alternative industrial chemistries
  • Low-carbon materials
  • Industrial hydrogen ecosystem
  • High-temp. industrial heat electrification

Innovation Spotlight

Startup: GPS Renewables
Stage:Series C
Funding Raised: 91.7 Mn USD
Status: Growth / Late Stage
Innovation: Full-stack clean fuels - specializing in biogas, bio-CNG, ethanol, and green hydrogen.

Startup: Newtrace
Stage: Pre-Series A
Funding Raised: 12.6Mn USD
Status: Pilot deployment, customer validation
Innovation: Electrolyzer technology for green hydrogen production

Research Lab: IISc - ICER
Green Hydrogen and Industrial Fuels: Prof. S. Dasappa (biomass-to-green H2 process)
Industrial Heat and Thermal Systems: Prof. P. Dutta (Thermal storage)
Advanced Materials: Prof. N. Ravishankar (catalysts, nanomaterial)

Opportunities under Industries Sector

High-temperature heat decarbonization
Industries
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High-temperature heat decarbonization

Reducing fossil dependence of high-temperature processes for decarbonizing India’s cement industry

Economic Potential, India 2030 2069 Mn USD
Mitigation Impact, India 2030 120 Mn Mt CO2e
Building India's compressor manufacturing capacity
Industries
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Building India's compressor manufacturing capacity

A need for indigenous and scalable manufacturing technology for compressors of Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC-R) systems

Economic Potential, India 2030 6000 Mn USD
Mitigation Impact, India 2030 25 Mn Mt CO2e
Blast furnace gas valorization
Industries
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Blast furnace gas valorization

Converting waste heat to value stream by utilizing blast furnace gas for India’s steel sector

Economic Potential, India 2030 ~1,250 Mn USD
Mitigation Impact, India 2030 ~125 Mn Mt CO2e
Industrial heat electrification
Industries
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Industrial heat electrification

Scalable modular heat pump product pathway for India’s sub-200oC industrial heat

Economic Potential, India 2030 5500 Mn USD
Mitigation Impact, India 2030 400 Mn Mt CO2e