Transitioning to a Green Economy in Emerging Markets: A Comparative Policy Analysis of India's Renewable Energy, Green Finance, and Emissions Trajectory: A Conceptual and Data-Driven Policy Analysis

Abstract

The transition toward a green economy has emerged as a central policy priority for emerging markets seeking to reconcile economic growth with environmental sustainability and climate commitments. This paper undertakes a conceptual and data-driven analysis of green economy transition in India, situating it within the comparative context of other major emerging economies including China, Brazil, and South Africa. Drawing on secondary data from the International Renewable Energy Agency (IRENA), the Ministry of New and Renewable Energy (Government of India), the Climate Bonds Initiative, the United Nations Environment Programme (UNEP), and the Council on Energy, Environment and Water (CEEW), the study traces the trajectory of India's renewable energy capacity expansion, green finance mobilisation, emission-intensity reduction, and green employment generation between 2014 and mid-2025. The analysis is organised around three theoretical pillars of the green economy paradigm — decoupling of growth from resource use, inclusive and equitable transition, and institutional-financial innovation — and evaluates India's progress against its Nationally Determined Contributions (NDC) under the Paris Agreement. Findings indicate that India has achieved rapid absolute capacity growth (installed renewable capacity rising from 76.38 GW in 2014 to 226.9 GW in June 2025) and reached its 2030 non-fossil capacity target five years ahead of schedule, while green finance instruments remain comparatively underdeveloped relative to global peers. The paper identifies structural barriers — financing gaps, state-level disparities, and grid integration constraints — that continue to limit the depth of India's green transition, and concludes with policy recommendations for scaling green finance, strengthening carbon pricing mechanisms, and embedding distributive equity into future NDC commitments.