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

The analysis indicates that India can achieve its 2070 net-zero target without compromising economic development, though the transition will create uneven regional and sectoral impacts. Key challenges include the need for economic diversification in fossil fuel-dependent regions, increased demand for skilled workers in specialized manufacturing, and the risk of exacerbating vulnerabilities in sectors like construction. Additionally, the decline in fossil fuel tax revenues will necessitate new public revenue mobilization strategies.

• India can transition to a low-carbon economy consistent with its net-zero target without hindering its overall economic development, provided that policy roadmaps address the uneven nature of the impacts to ensure equity.
• The transition is expected to cause regional economic disparities due to changes in sectoral activity, necessitating diversification programs for areas dependent on fossil fuels.
• Labor market shifts will include a move toward specialized manufacturing requiring higher skill levels and a potential increase in worker vulnerability in fast-growing sectors like construction, which currently suffer from poor working conditions.
• Declining tax revenues from fossil fuels are likely to increase pressure on public expenditure, requiring the identification of new sources for public revenue mobilization.

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} }