FISCAL ROADMAP TO GREEN GROWTH

WHEN India pledged net-zero emissions by 2070 at COP26, it was a blueprint for a new development model where growth and sustainability rise together.

- ANIL K ANTONY

Four years later, the 56th GST Council meeting provided a powerful new instrument to advance that vision. The introduction of GST 2.0—which included a rationalisation of tax rates on renewable energy devices, green technologies and sustainable transport-has embedded climate action into the heart of fiscal policy. This is not merely about making green products cheaper. It is about re-engineering economics so that clean power and sustainable choices become the most viable pathway for citizens and industries.

The decision to reduce GST on solar panels, photovoltaic cells and wind turbines directly cuts the capital costs of renewable energy projects. This translates into more affordable tariffs for households and industries, accelerating adoption. For farmers, lower taxes on solar pumps mean reduced irrigation costs. For manufacturers, the reform strengthens the domestic supply chain under the government’s production-linked incentive scheme. By enhancing competitiveness, India can position itself as a global hub for renewable energy manufacturing. For consumers, this will mean tangible savings on power costs and easier access to clean energy options. In essence, GST 2.0 ensures that renewable power is no longer an aspirational option but an accessible reality for all sections of society.