By 2030, Dalberg estimates suggest that cleantech manufacturing could create a domestic market worth $120-150 billion annually and generate export opportunities of $40-45 billion. Additionally, localising the supply chain could save nearly $2 trillion in imports by 2047, reducing India’s reliance on fossil fuels and external technologies. These savings align with the broader goal of swadeshi development, where domestic production ensures strategic autonomy. Job creation represents another critical advantage, with climate-tech and clean energy supply chains projected to generate 50 million new jobs by 2070. This growth would not only drive economic development but also foster inclusive opportunities for India’s burgeoning workforce, reinforcing the ethos of self-reliance.

Despite the potential, multiple barriers hinder the growth of cleantech manufacturing in India. Domestic production costs for solar modules and batteries are 1.5 to 2 times higher than imports from China. This stark contrast reflects higher production costs of clean technologies and limited domestic supply chain integration. Enhancing India’s industrial capabilities through localised supply chains is imperative to reverse this trend. Additionally, the high cost of capital, ranging between 8%-20% in India compared to 2%-5% in developed countries, deters investments. India’s investment in research and development (R&D) stands at 0.6% of the Gross Domestic Product (GDP), significantly lower than the 2%-5% invested by leading economies. This R&D gap must be closed to strengthen India’s technological base, driving innovation that is tailored to Indian conditions and resources, a hallmark of swadeshi enterprise. Furthermore, the renewable energy sector faces a workforce gap of 1.2 million, with demand projected to increase by 26% by 2027.

A few immediate solutions lie ahead of us: India must scale domestic manufacturing by expanding PLI schemes to cover more cleantech sectors and provide tax benefits and infrastructure support to reduce import dependencies. A renewed emphasis on swadeshi manufacturing policies can drive innovation, strengthen local industries, and secure India’s leadership in the global cleantech market. Innovative financing mechanisms such as green bonds, concessional loans, and blended finance models can attract capital while lowering borrowing costs. Increasing public and private investment in R&D will foster innovation, reduce production costs, and accelerate commercialisation of new technologies.

Addressing workforce shortages is crucial, and scaling up programmes such as the Suryamitra and Vayumitra initiatives will ensure a skilled workforce to support emerging industries. Collaborations with international partners for technology transfers, raw material access, and co-investment will further bolster domestic capabilities and enhance India’s role in the global cleantech value chain.

We see the launch of the Green Manufacture India platform at the inaugural Bharat Climate Forum as a significant step toward realising some of these opportunities. The platform aims to unify stakeholders across policy, industry, finance, and research sectors to accelerate cleantech manufacturing and supply chain resilience. Through roundtables, summits, and policy recommendations, the platform aspires to serve as a hub for India’s clean energy ecosystem, fostering investment matchmaking and technological innovation.

India stands at a pivotal juncture. A robust cleantech ecosystem will position India as a leader in the global green economy, driving prosperity for future generations. This pathway echoes the principles of swadeshi, underscoring the importance of indigenous capacity building to secure India’s climate and economic future.

Ashwani Mahajan is national co-convenor, Swadeshi Jagran Manch, and Jagjeet Singh Sareen is partner, Dalberg Advisors. The authors are member-secretaries of the Bharat Climate Forum.The views expressed are personal