Industries: Key to Self-Reliance & Net Zero

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. Growing at a rapid pace, India's Index of Industrial Production (IIP) maintained a steady year-on-year growth in the mid-single digits throughout 2025.

Geopolitical & Climate Risk

India's industrial sector contributes to about 2% of the total global GHG emissions, with over 60% of its process heat and energy needs met directly by fossil fuels. This, combined with nearly 40% imported fuel dependence, exposes the sector to geopolitical supply disruptions and price volatility, squeezing the already narrow profit margins.

Policy Tailwinds

India's climate policies aim at regulating emissions while decoupling them from economic growth. The Carbon Credit Trading Scheme (CCTS) and compliance carbon market establish mandatory GHG emission-intensity targets for energy intensive industrial sectors. The EU Carbon Border Adjustment Mechanism (CBAM) acts as one of the most consequential external regulatory forces reshaping India's export-oriented sectors and their decarbonization strategies.

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)

Decarbonization dual challenge

Given that almost 30% of India's GDP is from the industrial sector, the balancing act of decarbonization will be to facilitate and maintain rapid industrial growth while significantly reducing emissions intensity.

Fragmentations

The Micro, Small, and Medium Enterprises (MSMEs) remain highly fragmented, creating multiple entry barriers. Hence, they remain largely untapped with chronic financing hurdles.

India's Nationally Determined Contribution (NDC) Target for 2035 aims at a 47% reduction in emissions intensity relative to 2005 levels.

Digital & AI Revolution - The falling cost of RE electricity makes electrification the easiest route 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. Many IoT devices and software are being developed to make this transition faster and cost-effective.