Green Economic Rural-Urban Divide

The green economy in India reflects a significant divide between urban and rural areas. Urban regions benefit from green investments, electric vehicle infrastructure, solar rooftops, and green jobs. In contrast, rural areas lack access to clean energy, efficient irrigation, and sustainable livelihoods, along with slower technology adoption.

India’s Bioeconomy Growth

India's bioeconomy has seen substantial growth, expanding from $10 billion in 2014 to $165.7 billion in 2024, making up 4.25% of the GDP. This growth is powered by over 10,000 bio-economy start-ups. Major contributors include:

• Industrial bioeconomy (biofuels and bioplastics) - 47%
• Pharmaceuticals - 35%
• Emerging sectors like research and IT

Major milestones include achieving 20% ethanol blending in petrol and becoming the third-largest pharmaceutical producer globally by volume.

Job Creation and Economic Impact

• Expected to create 35 million jobs by 2030.
• Rural consumer spending is growing faster than urban, indicating improved rural purchasing capacity.

Challenges in Green Economy Transition

Despite global economic slowdowns, India prioritizes green economy for energy security and competitiveness. However, challenges include:

• Climate disruptions affecting inflation and the rural bioeconomy.
• Regulatory frameworks being urban-focused and fragmented.
• Significant regional disparities, with certain states contributing more to the bioeconomy.

Gender Disparity

• Women hold only 11% of jobs in the rooftop solar sector.
• Low representation in key roles: 1% in operations, 3% in construction.

Trade-offs and Policy Considerations

India faces trade-offs in promoting renewables while subsidizing fossil fuels. Massive industrial expansion pressures green technology investments. Challenges include:

• 85% of global clean energy investments go to advanced economies, with only 15% to India and developing markets.
• Risk of disproportionate impacts on rural areas and vulnerable groups.

Sector-Specific Impacts

• Agriculture supports 58% of rural livelihoods, vulnerable to climate variations.
• Transport sector's carbon footprint increases due to food miles.

Path Forward: Integrated Landscape Approach

An integrated landscape approach can boost both ecological and human benefits. Key strategies include:

• Participatory planning leveraging Panchayati Raj Institutions and local authorities.
• Promotion of circularity, green energy, and bioeconomy with gender mainstreaming.
• Targeted fiscal incentives, clearer enforcement roles, and local capacity building.

This approach can help India achieve climate and sustainable development goals, unlocking new growth engines and resilience.