NITI Aayog’s Released Report on Decarbonisation Roadmaps for Cement, Aluminium and MSMEs Sector

India aims to transform into a Viksit Bharat by 2047 with a robust USD 30 trillion economy. This ambitious growth will be propelled by a surge in industrial activity alongside large-scale infrastructure development. 

A core objective driving this vision is raising the manufacturing sector’s contribution to GDP from 17% to 25%, reflecting the country’s commitment to sustainable industrialisation. 

To align industrial growth with climate goals, there is a critical requirement for industry-specific green transition roadmaps that are consistent with the vision of Viksit Bharat. In this context, NITI Aayog has released three comprehensive reports outlining decarbonisation strategies for the cement, aluminium, and MSME sectors. 

Cement Sector

As per areport by NITI Aayog, Cement production in India is expected to grow from 391 million tonnes in 2023 to nearly 2,100 million tonnes by 2070, a sevenfold increase. The roadmap emphasizes the need to reduce carbon intensity from 0.63 tCO₂e per tonne of cement to around 0.09–0.13 tCO₂e per tonne by 2070. 

Key strategies include prioritising refuse-derived fuels, clinker substitution, scaling up Carbon Capture, Utilisation, and Storage (CCUS), and effective implementation of a Carbon Credit Trading Scheme, enabling deep decarbonisation in the sector.

Aluminium Sector

Aluminium production is projected to rise dramatically from 4 million tonnes in 2023 to 37 million tonnes by 2070. The decarbonisation roadmap proposes a three-phase strategy: in the short term, transitioning to Renewable Energy-Round the Clock (RE-RTC) and improving grid connectivity; in the medium term, integrating nuclear power; and in the long term, adopting CCUS technologies to minimise emissions.

Also Read: Centre Releases Draft National Electricity Policy 2026 To Guide Power Sector Transformation

MSME Sector

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s industrial ecosystem, contributing nearly 30% to national GDP, employing over 250 million people, and accounting for about 46% of exports. The Green Transition Roadmap for MSMEs focuses on three critical levers: deploying energy-efficient equipment, adopting alternative fuels, and integrating green electricity, fostering sustainable industrial growth at scale.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.