NITI Aayog Unveils Green Transition Roadmaps for Cement, Aluminium, MSMEs

The roadmap projects cement production to rise nearly sevenfold, from 391 million tonnes in 2023 to around 2,100 million tonnes by 2070.

In a major step towards aligning India’s industrial growth with its climate commitments, NITI Aayog has released three sector-specific decarbonisation roadmaps for the cement, aluminium and MSME sectors, outlining pathways to achieve Viksit Bharat @2047 while progressing towards net-zero emissions by 2070.

The reports have been developed through extensive consultations with line ministries, industry stakeholders, research institutions and knowledge partners, recognising that India’s ambition of becoming a USD 30 trillion economy will be driven by rapid industrial expansion and large-scale infrastructure development. Increasing manufacturing’s share in GDP from 17% to 25% is central to this vision—making a planned and orderly green transition imperative.

Cement Sector: Deep Decarbonisation at Scale

The roadmap projects cement production to rise nearly sevenfold, from 391 million tonnes in 2023 to around 2,100 million tonnes by 2070. To support this growth sustainably, the sector must reduce its carbon intensity from 0.63 tCO₂e per tonne of cement to about 0.09–0.13 tCO₂e per tonne by 2070.

Key levers identified include:

• Large-scale use of refuse-derived fuels (RDF)

• Clinker substitution to lower process emissions

• Scaling up Carbon Capture, Utilisation and Storage (CCUS)

• Effective implementation of the Carbon Credit Trading Scheme

Together, these measures are expected to enable deep, long-term decarbonisation of one of India’s most emissions-intensive industries.

Aluminium Sector: Powering Growth with Clean Energy

India’s aluminium production is projected to expand from 4 million tonnes in 2023 to 37 million tonnes by 2070. The roadmap outlines a phased decarbonisation strategy:

• Short term: Transition to Renewable Energy–Round the Clock (RE-RTC) power and enhanced grid connectivity

• Medium term: Adoption of nuclear energy to ensure reliable, low-carbon baseload power

• Long term: Integration of CCUS to address residual emissions

This approach balances rapid capacity expansion with the need for energy security and emissions reduction.

MSMEs: Green Transition for the Backbone of the Economy

India’s MSME sector, contributing nearly 30% of GDP, employing over 250 million people, and accounting for 46% of exports, is central to both economic growth and decarbonisation.

The MSME roadmap focuses on three primary levers:

• Deployment of energy-efficient equipment

• Adoption of alternative and cleaner fuels

• Integration of green electricity

The report emphasises a cluster-based implementation framework to ensure scalability, cost-effectiveness and ease of adoption across diverse MSME segments.

Leadership Perspectives

Shri Suman Bery, Vice Chairperson, NITI Aayog, highlighted that MSMEs are critical to domestic and global supply chains, calling for prioritised technology adoption, access to affordable finance, skilling, regulatory reforms, and greater female workforce participation to enhance competitiveness.

Shri B. V. R. Subrahmanyam, CEO, NITI Aayog, said the roadmaps would serve as reference manuals for India’s unique challenge of achieving simultaneous industrial growth and decarbonisation.

Shri S. C. L. Das, Secretary, MSME, welcomed the broad-based approach, noting that the cluster framework would support effective on-ground implementation.

Shri Madhav Pai, CEO, WRI India, described the timing of the reports as critical, given India’s developmental ambitions and climate commitments.

Shri Ishtiyaque Ahmed, Programme Director, NITI Aayog, detailed how sectors can decarbonise through energy efficiency, round-the-clock renewables, CCUS and nuclear energy.

A Blueprint for Green Industrialisation

Together, the three reports provide a comprehensive, sector-specific blueprint for transforming India’s industrial base into a low-carbon, globally competitive manufacturing powerhouse, reinforcing the country’s pathway towards Viksit Bharat @2047.