On January 21, 2026, NITI Aayog unveiled a comprehensive policy blueprint aimed at the deep decarbonization of India’s most energy-intensive industries: Cement, Aluminium, and MSMEs.These reports are designed to bridge the gap between India’s massive infrastructure expansion goals and its commitment to reach Net Zero by 2070. Currently, the industrial sector accounts for approximately 24% of India’s greenhouse gas emissions, a figure that could surge as production is projected to scale up to fivefold by 2047.
The Cement Sector Roadmap
With cement production expected to reach ~2,100 million tonnes by 2070, the roadmap focuses on reducing carbon intensity from the current 0.63 tCO2e to between 0.09 and 0.13 tCO2e per tonne.
- Fuel Shift: The primary strategy involves substituting coal with Refuse-Derived Fuels (RDF) sourced from municipal solid waste.
- Material Innovation: Increasing the use of clinker substitutes and supplementary cementitious materials.
- Carbon Management: Scaling up Carbon Capture, Utilisation, and Storage (CCUS) technologies and utilizing the newly established Carbon Credit Trading Scheme to incentivize lower emissions.
The Aluminium Sector Roadmap
The aluminium sector is classified as “hard-to-abate” because electricity makes up over 75% of its manufacturing emissions. The roadmap proposes a three-phase transition:
- Short-term (to 2030): Switching to Renewable Energy-Round the Clock (RE-RTC) and improving grid connectivity.
- Medium-term (2030–2040): Integrating Nuclear Power to provide the steady, high-load carbon-free energy required for smelting.
- Long-term (post-2040): Deploying CCUS for remaining coal-based captive power plants.
Global Context: This transition is also seen as a safeguard against international carbon taxes, such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
Greening the MSME Sector
NITI Aayog recommended the creation of a National Project Management Agency (NPMA) to help India’s 69 million MSMEs transition to green energy.
- Funding: The report suggests allocating 8–9% of the credit-guarantee fund specifically for green projects and providing a 15% capital subsidy for energy-efficient machinery.
- Efficiency: The goal is a 20% reduction in energy consumption through the adoption of modern heat pumps, boilers, and green electricity for micro-units.
The release of these roadmaps underscores that India’s industrial future is inextricably linked to its ability to decouple production growth from environmental impact. As the country moves toward its 2047 economic milestones, the adoption of these low-carbon technologies will be the defining factor in maintaining global competitiveness and meeting international climate obligations. For stakeholders across these sectors, the focus now shifts to immediate implementation: securing renewable energy infrastructure, investing in carbon-capture pilots, and leveraging government subsidies to modernize legacy operations.
