ACCELERATING GREEN MANUFACTURING AND RENEWABLE ENERGY EQUIPMENT PRODUCTION FOR INDIAS SUSTAINABLE URBAN GROWTH

Indias rapid urbanization and escalating household consumption have exerted mounting pressure on its industrial energy demand and environmental commitments. To reconcile economic growth with sustainability imperatives, this policy paper examines the twin strategies of green manufacturing and domestic renewable energy (RE) equipment production. The analysis synthesizes Indian case studies, evaluates policy instruments such as the Production-Linked Incentive (PLI) and Perform, Achieve, and Trade (PAT) schemes, and unpacks critical debates around cost competitiveness, self-reliance, and R&D investment. Key findings reveal that integrating green manufacturing through measures like closed-loop water recycling and IOT-enabled predictive maintenance can reduce lifecycle costs and abate up to 30 mtco annually by 2030. Simultaneously, scaling domestic RE equipment production mitigates import bills (potentially saving USD 1.1 billion annually), generates over 1 million jobs, and attracts USD 15 billion in green-manufacturing investments. However, barriers persist: nearly 45% of output from MSMEs faces prohibitive cost premiums; state-level disparities undermine PLI effectiveness; and R&D intensity remains below 0.7% of GDP, far below global leaders. Drawing on these insights, the paper advocates for a cohesive policy framework thatextends concessional financing to MSMEs; harmonizes state-level implementation; incentivizes targeted R&D through public private consortia; and aligns import-duty measures with deployment timelines to prevent supply bottlenecks. An integrated approach is vital to drive Indias transition toward sustainable urban growth.