This policy brief focuses on manufacturing in sectors where the end products contribute to environmental sustainability — by reducing emissions, improving resource efficiency, or enabling circular material use. It does not focus on greening the manufacturing process itself.

The brief examines nineteen manufacturing-intensive value chains across three sectors of the green economy: energy transition (including solar, wind, battery, EV, and green hydrogen manufacturing), the circular economy (including e-waste, plastic waste, and lithium-ion battery recycling), and the bio-economy (including engineered bamboo, bio-residue-based packaging, biofuels, and bio-inputs).

Addressing systemic barriers that cut across multiple value chains generates far greater impact than solving for sector-specific challenges in isolation. Many of these barriers — such as low R&D intensity or limited access to finance — constrain growth across energy transition, circular economy, and bio-economy sectors simultaneously.

MaaS allows manufacturers to access machinery and production capacity on a subscription basis, eliminating heavy upfront investments. This helps SMEs avoid being locked into outdated technologies and improves their ability to adapt as green technologies evolve.

Servitisation is the integration of services into the manufacturing sector. It gives Indian manufacturers a competitive edge by providing services like predictive maintenance, which ensures smooth machine operations and lower maintenance costs.

Natural Farming (NF) is an agroecological approach to agriculture that seeks to reduce dependence on synthetic chemical inputs such as fertilisers, pesticides, and herbicides. Instead, it promotes the use of locally prepared natural bio-inputs, ecological pest management, crop diversity, mulching, and soil health restoration practices such as pre-monsoon dry sowing. NF aims to lower cultivation costs, improve soil health, reduce ecological stress, and support safer and healthier food systems.

The Andhra Pradesh Community-managed Natural Farming (APCNF) programme is a state-led agroecological initiative launched in 2016 and implemented by Rythu Sadhikara Samstha (RySS). It is among the world’s largest community-driven natural farming programmes. APCNF aims to transition 8 million farming households in Andhra Pradesh to natural farming by 2036. The programme relies on women-led self-help groups (SHGs), community resource persons (CRPs), peer learning, and local extension systems to support farmer transition and long-term adoption.

The Andhra Pradesh Community-managed Natural Farming (APCNF) programme is among the world’s largest agroecological transitions. Its scale, institutional design, and long-term implementation offer valuable lessons for India’s broader natural farming mission.

The study identifies sustained CRP engagement, peer networks, women’s participation in farm decisions, and health motivations as key drivers.

No. The study finds that adoption intensity among already transitioned farmers does not vary significantly by landholding size.

Women’s participation in household production decisions positively influences adoption intensity. Women-led SHGs also play a central role in dissemination and peer learning.

An ETS is a market-based mechanism that caps emissions and allows entities to trade allowances or credits. It is important for emerging economies because it enables cost-effective emissions reductions while supporting economic growth, particularly in contexts where development and industrial expansion remain priorities

ETSs in emerging economies tend to be phased, intensity-based, and initially limited in scope, reflecting the need to balance emissions reduction with economic growth. Over time, these systems evolve toward greater stringency, broader coverage, and improved market functioning.

Robust MRV systems ensure data accuracy, transparency, and compliance, forming the backbone of credible carbon markets. Without strong MRV, carbon markets risk weak enforcement, low trust, and poor environmental outcomes.

Pilot phases and prior mechanisms help build institutional capacity, data systems, and market readiness. They allow policymakers to test design features and refine systems iteratively before full ETS implementation.

An airshed is a geographical area affected by the same airmass. It is the region of the atmosphere which behaves coherently concerning the dispersion of pollutants.

An airshed approach is important for cities like Delhi because air pollution defies administrative boundaries and a large share of pollution originates from outside the city. For instance, around 42 per cent of the black carbon load in winter and 36 per cent in autumn over Delhi is from the neighbouring NCR states. Similarly, about 60 per cent of Delhi’s winter pollution load comes from outside the city.

India should focus on the reduction of emissions, targeting sources which are identified through regularly updated emission inventories. There should be a multi-jurisdictional body to coordinate between different stakeholders and have realistic and time-bound air pollution management strategies following the examples of Mexico and China. Airshed management also requires the identification of a funding mechanism involving multiple stakeholders and fixing accountability of bureaucracy through periodic reviews.