Green Exports: Driving Sustainable Growth in Indian Manufacturing

A groundbreaking study by the Indian Institute of Management (IIM), Lucknow, has revealed that exporting not only spurs business growth but also promotes environmental sustainability in Indian factories. The study, published in the Energy Economics journal, analyzed two decades of firm-level data, offering new insights into the role of exports in enhancing energy efficiency.

Led by Professor Chandan Sharma, the research highlights that within a few years of entering global markets, Indian manufacturing companies become more energy efficient by adopting advanced technologies. This finding challenges the prevailing notion that globalization negatively impacts the environment in developing countries.

Sharma suggests that policymakers can harness these insights to align trade policy with energy efficiency objectives. By promoting foreign technology access and providing incentives for energy-efficient upgrades, India can make significant strides toward achieving its climate goals under the Paris Agreement, while simultaneously boosting economic growth.

(With inputs from agencies.)