Archive · 27 Jan 2026
NITI Aayog Proposes Green Transition for MSMEs
India's government think tank, NITI Aayog, has a plan to help small and medium businesses (MSMEs) become more environmentally friendly.
These businesses make up a big part of India's economy and exports.
The plan includes setting up a new agency to manage the transition, providing money to help businesses buy cleaner machinery, and installing solar panels on their roofs.
The goal is to reduce pollution and meet the requirements of countries like those in Europe, which are starting to tax products that are not made in a green way.
This transition might be expensive for small businesses, but the government is offering support to make it easier.
NITI Aayog proposes a National Project Management Agency (NPMA) to oversee MSME decarbonisation.
The plan includes viability gap funding (VGF) of ₹6,000 crore for energy-efficient technologies.
A ₹7,000 crore rooftop solar scheme is proposed to target 1-1.5 million MSMEs.
Key subsectors identified for immediate action include textiles, paper, steel re-rolling, foundry, and forging.
The government aims to facilitate the adoption of natural gas in MSME clusters to reduce emissions.
- Who
- NITI Aayog and MSME Ministry
- What
- Proposed decarbonisation plan for MSMEs
- When
- Report dated 22 January 2024
- Where
- India
- Why
- To meet green product requirements and remain competitive in exports
- MSME Sector Contribution to Exports
- 45%
- MSME Sector Contribution to Economic Output
- 30%
- Employment in MSME Sector
- 330 million
- Proposed Viability Gap Funding (VGF)
- ₹6,000 crore
- Proposed Rooftop Solar Scheme Budget
- ₹7,000 crore
- Target MSMEs for Rooftop Solar
- 1-1.5 million
- Key MSME Subsectors for Decarbonisation
- Textiles, Paper, Steel Re-rolling, Foundry, Forging
- EU Carbon Border Adjustment Mechanism (CBAM) Start Date
- 1 January 2024
