Domestic drive for green growth 

October 7, 2025

The National Manufacturing Mission (NMM) is emerging as a critical instrument to mitigate supply chain risks and harness economic opportunities in India’s clean energy transition, according to a report released on Monday.

The nation’s power, transport, and industrial sectors account for nearly 90 per cent of India’s carbon dioxide emissions, making them central to decarbonisation efforts. While policy frameworks supporting renewable energy, Green Hydrogen, and electric vehicles are in place, the report by credit rating agency ICRA points to a major vulnerability: India’s high import dependence. Critical components such as solar photovoltaic (PV) modules, advanced battery storage systems, and wind turbine parts continue to be largely imported, with dependency ranging from 20 per cent to 90 per cent.

Persisting with this reliance, even as India scales up production to meet its 2030 clean energy targets, could result in nearly 70 per cent of capital investment in these sectors flowing to global manufacturing hubs. The NMM was launched to address this challenge by strengthening domestic production of clean energy technologies and reducing reliance on imports.

The mission’s objectives are closely aligned with India’s nationally determined contributions (NDC) and place particular emphasis on integrating micro, small, and medium enterprises (MSMEs) and startups into the domestic clean technology ecosystem. By fostering participation from smaller enterprises, the NMM seeks to ensure both economic inclusivity and broader domestic manufacturing capacity.

Early results indicate progress. The Union Budget for 2025-26 allocated 10 per cent of the NMM’s total outlay, while over 500 MSMEs and startups had been onboarded by August this year. These initial steps signal the government’s intent to create a resilient domestic supply chain for clean energy technologies.

ICRA highlighted three potential outcomes of successful NMM implementation. First, it could significantly reduce India’s import dependency in critical clean energy components. Second, it is expected to generate employment opportunities within the cleantech sector, supporting both skilled and semi-skilled jobs. Third, by enhancing domestic capabilities, the mission could position India as a leading exporter of clean energy technologies in the global market.

The report stresses that the mission’s long-term success will depend on effective execution, which would allow India to leverage domestic strengths, secure its supply chain, and establish a competitive position in the fast-growing global cleantech industry.

The National Manufacturing Mission thus represents not only a strategy to meet environmental goals but also an opportunity to build economic resilience and global leadership in clean technology.