Roadmap for an equitable Green Economic Diversification in Jharkhand

This technical brief outlines a roadmap for Jharkhand to transition from a fossil-fuel-dependent economy to a green industrial hub. It estimates a peak state revenue loss of USD 1.43 billion per year and proposes a USD 41.4 billion investment across green molecules, sustainable mobility, and green equipment manufacturing to substitute these losses and create new employment opportunities through a three-phase strategic framework (2026-2070).

• Jharkhand faces significant economic risks due to its reliance on solid fossil fuels, as national demand for these fuels in the power sector is expected to peak between 2030 and 2035. The state's non-tax revenue is heavily dependent on mining, which accounted for nearly 80% of such revenue in FY 2023.
• The transition could lead to substantial losses in state revenue and employment. Direct employment reductions in mining could peak at approximately 100,000 jobs per year. The estimated peak loss in state revenue due to the decline of fossil fuels for conventional power is USD 1.43 billion per year.
• To substitute lost fossil fuel revenues, Jharkhand can invest in three primary green sectors requiring a total cumulative investment of USD 41.4 billion. These sectors include Green Molecules Production (USD 21.8 billion), Sustainable Mobility & Components Manufacturing (USD 14.3 billion), and Green Equipment Manufacturing (USD 5.3 billion).
• The proposed green sectors have the potential to generate a combined annual state tax revenue of USD 1.43 billion, effectively substituting the peak revenue loss from fossil fuels. Specifically, Green Molecules could provide USD 350 million, Sustainable Mobility USD 680 million, and Green Equipment Manufacturing USD 403 million annually.
• The document proposes a three-phase strategic framework for diversification: an Enabling Phase (2026-35) focusing on using fossil fuel revenues to build foundational systems; a Scaling-Up Phase (2036-47) to accelerate green infrastructure and absorb employment impacts; and a Viksit Bharat phase (2048-70) where a low-carbon economy becomes the primary growth driver.
• Key recommendations for the state include adopting a formal statewide Green Transition plan with five-year action cycles, prioritizing diversification in mining-focused districts, and deploying a dedicated transition financing framework to crowd-in private capital using public finance and fossil fuel revenues.

APA

Thampi, M., Kumar, M., & Khurana, S. (2025). Roadmap for an equitable Green Economic Diversification in Jharkhand. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CIFF-JT-Technical-Brief-1.pdf

Chicago

Thampi, Malavika, Manish Kumar, and Saarthak Khurana. Roadmap for an equitable Green Economic Diversification in Jharkhand. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CIFF-JT-Technical-Brief-1.pdf.

Wikipedia

{{cite report |last1=Thampi |first1=Malavika |last2=Kumar |first2=Manish |last3=Khurana |first3=Saarthak |title=Roadmap for an equitable Green Economic Diversification in Jharkhand |publisher=Climate Policy Initiative |date=December 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CIFF-JT-Technical-Brief-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{thampi2025roadmap, author = {Thampi, Malavika and Kumar, Manish and Khurana, Saarthak}, title = {{Roadmap for an equitable Green Economic Diversification in Jharkhand}}, institution = {Climate Policy Initiative}, year = {2025}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CIFF-JT-Technical-Brief-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }