Macroeconomic Impacts of Long-Term Decarbonization in India: Implications for a Just Transition

This briefing analyzes the potential macroeconomic effects of India's transition to a low-carbon economy aligned with its 2070 net-zero emissions target, utilizing the India Energy Policy Simulator to assess impacts on growth, employment, and tax revenues.

• India can achieve a transition to a low-carbon economy consistent with its net-zero target without hindering its economic development, provided that policy roadmaps address the differential nature of the impacts to maintain inclusive and equitable outcomes.
• The decarbonization process is expected to create several specific macroeconomic and social challenges: regional economic disparities due to changes in sectoral activity necessitating diversification for fossil fuel-dependent areas; a shift toward specialized manufacturing that increases the demand for skilled labor; potential increases in worker vulnerability in fast-growing sectors like construction; and a need for new public revenue sources to offset falling tax collections from fossil fuels.

APA

World Resources Institute (n.d.). Macroeconomic Impacts of Long-Term Decarbonization in India: Implications for a Just Transition. https://www.wri.org/research/macroeconomic-impacts-long-term-decarbonization-india-implications-just-transition

Chicago

World Resources Institute. Macroeconomic Impacts of Long-Term Decarbonization in India: Implications for a Just Transition. n.d. https://www.wri.org/research/macroeconomic-impacts-long-term-decarbonization-india-implications-just-transition.

Wikipedia

{{cite report |author=World Resources Institute |title=Macroeconomic Impacts of Long-Term Decarbonization in India: Implications for a Just Transition |url=https://www.wri.org/research/macroeconomic-impacts-long-term-decarbonization-india-implications-just-transition |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendmacroeconomic, author = {{World Resources Institute}}, title = {{Macroeconomic Impacts of Long-Term Decarbonization in India: Implications for a Just Transition}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/macroeconomic-impacts-long-term-decarbonization-india-implications-just-transition}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }