Decarbonising India’s Industrial Engine: NITI Aayog Sets Carbon Reduction Pathways for Cement, Aluminium and MSMEs

NITI Aayog on Tuesday released three sector-specific reports outlining decarbonisation roadmaps for the cement, aluminium and micro, small and medium enterprises (MSME) sectors, aimed at aligning India’s industrial growth with its long-term climate and development goals.

The reports come as India pursues its ambition of becoming Viksit Bharat by 2047 and building a USD 30 trillion economy, alongside its commitment to achieve net-zero greenhouse gas emissions by 2070. With industrial activity and infrastructure development expected to expand significantly, NITI Aayog said there is a critical need for industry-specific green transition pathways that support both economic growth and emissions reduction.

The three roadmaps were developed in consultation with line ministries, industry stakeholders, research institutions and knowledge partners.

Green Transition in the Cement Sector

According to the report, India’s cement production is projected to rise nearly sevenfold, from 391 million tonnes in 2023 to about 2,100 million tonnes by 2070. To support this growth while meeting climate targets, the sector will need to reduce its carbon intensity from 0.63 tCO₂e per tonne of cement to around 0.09–0.13 tCO₂e per tonne by 2070.

The roadmap prioritises the use of refuse-derived fuels, increased clinker substitution, large-scale deployment of Carbon Capture, Utilisation and Storage (CCUS), and effective implementation of the Carbon Credit Trading Scheme to enable deep decarbonisation of the cement industry.

Decarbonisation Pathway for Aluminium

The aluminium sector roadmap projects production growth from 4 million tonnes in 2023 to 37 million tonnes by 2070. The report outlines a phased green transition strategy, beginning with a shift to renewable energy-based round-the-clock (RE-RTC) power and improved grid connectivity in the short term. In the medium term, the roadmap envisages the adoption of nuclear power, followed by long-term integration of CCUS technologies to achieve deep emissions reductions.

Green Transition of MSMEs

Recognising MSMEs as the backbone of India’s industrial ecosystem—contributing nearly 30 per cent to GDP, employing over 250 million people and accounting for around 46 per cent of exports—the MSME roadmap focuses on three key levers: deployment of energy-efficient equipment, adoption of alternative fuels, and integration of green electricity.

Leadership Perspectives

Speaking at the release, NITI Aayog Vice Chairperson Shri Suman Bery emphasised the critical role of MSMEs in domestic and global supply chains and called for prioritising technology adoption, access to affordable finance, skilling and regulatory reforms, along with greater participation of women in the workforce to enhance competitiveness.

NITI Aayog CEO Shri B. V. R. Subrahmanyam said the roadmaps would serve as reference frameworks for achieving India’s dual objectives of becoming a developed nation while decarbonising its industrial base. Secretary, MSME, Shri S. C. L. Das welcomed the broad and practical focus of the reports, noting that a cluster-based implementation framework would support effective on-ground adoption.

Shri Madhav Pai, CEO, WRI India, highlighted the timeliness of the roadmaps in view of India’s development ambitions and climate commitments. Programme Director, NITI Aayog, Shri Ishtiyaque Ahmed, said the cement, aluminium and MSME sectors could be effectively decarbonised through a combination of energy efficiency, round-the-clock renewables, CCUS and nuclear energy, as outlined in the reports.