Development vs. Climate Transitions: Is This a False Choice

Introduction

India today stands at a crucial crossroads: a nation dedicated to lifting millions more out of poverty and inequality, while also facing an escalating climate crisis. The key question — whether economic growth and climate action can progress hand in hand or must be in conflict — has never been more pressing.

For decades, India’s development has been portrayed as a race to catch up with the industrialised world, often driven by coal, steel, cement, and other carbon-heavy sectors. However, the reality of climate change shows that copying the Western growth model is neither practical nor sustainable. Likewise, halting development in the name of environmental protection is unfair when millions still lack access to reliable electricity, clean cooking fuel, nutritious food, or decent livelihoods.

This article contends that the dichotomy of “development versus climate transitions” is a false choice. Instead, India’s future relies on integrating climate action into its growth model—through technology, finance, diplomacy, and inclusive governance. Climate action is not a hindrance to development but rather its facilitator: maintaining resilient health systems, safeguarding agriculture, and preserving the demographic dividend.

The Scale of the Challenge

India ranks as the third-largest emitter of greenhouse gases worldwide, accounting for approximately 7% of global CO₂ emissions. However, on a per capita basis, its emissions are less than half the global average and nearly one-seventh of those in the United States. (1) This contrast illustrates India’s unique challenge: it must reduce emissions while still providing development for 1.4 billion people, many of whom still lack basic amenities.

Approximately 230 million Indians still live in poverty according to multidimensional measures. (2) Nearly 40% of the workforce relies on agriculture, a sector highly vulnerable to heatwaves, erratic monsoons, and floods. (3) Public health issues – from air pollution to malnutrition – intersect with climate stresses, heightening inequalities. In this context, slowing economic growth in the name of climate action is politically and socially unacceptable.

But ignoring climate change is just as dangerous. The Intergovernmental Panel on Climate Change (IPCC) warns that South Asia is a regional hotspot for heat extremes, water shortages, and food insecurity. (4) A recent Lancet Countdown report estimates that heat-related deaths among older Indians have risen by 55% in the past two decades, while productivity losses caused by heat exposure cost billions each year. (5) Climate inaction, therefore, risks hindering India’s development progress, damaging human capital and worsening inequality.

Linking Climate and the SDGs

The Sustainable Development Goals (SDGs) provide a perspective on the close link between climate and development. Consider:

• SDG 1 (No Poverty): Climate-induced crop failures and health shocks are among the leading causes driving families back into poverty in India.
• SDG 3 (Good Health): Increasingly, vector-borne diseases such as dengue and malaria are associated with rising temperatures and unpredictable rainfall.
• SDG 5 (Gender Equality): Women, especially in rural India, bear the brunt of water scarcity and fuel shortages, which are exacerbated by climate stress.
• SDG 8 (Decent Work): Outdoor workers, including farmers, construction labourers, and street vendors, lose working hours due to extreme heat, which directly impacts their livelihoods.
• SDG 13 (Climate Action): Clearly, none of the above SDGs can be achieved without incorporating climate resilience.

COVID-19 served as a sobering example of how systemic shocks — many of which are made more probable by climate change — can simultaneously reverse years of progress across the SDGs. The pandemic disrupted education, healthcare, gender equality, and livelihoods all at once. Climate disasters pose a similar cross-sectoral risk.

Public Health as a Climate-Development Nexus

India’s health sector demonstrates vividly why the climate-development trade-off is illusory. Climate change increases disease burdens through heat stress, vector-borne illnesses, malnutrition, and pollution-related diseases. Already, air pollution is the second-largest risk factor for disease burden in India, linked to about 1.6 million deaths annually. (6)

Investing in clean energy and sustainable urban planning is not just “climate action” — it directly reduces hospital admissions, boosts productivity, and improves quality of life. For example, phasing out biomass cooking fuels cuts both carbon emissions and indoor air pollution, saving lives (often of women and children) while also lowering overall emissions.

Similarly, Heat Action Plans (HAPs), developed in Ahmedabad after the deadly 2010 heatwave, combine early warning systems, public awareness, and cooling centres. These measures save thousands of lives each summer while preparing cities for the increasing severity of climate risks. (7) However, most HAPs still overlook mental health impacts, gender-specific vulnerabilities, and their integration into primary care systems. Incorporating these elements can enhance their developmental impact.

Gender and Youth Dimensions

Gender and youth perspectives strengthen the argument. Women, especially in rural India, bear a disproportionate responsibility for water collection, food preparation, and agricultural labour — all sectors heavily reliant on the climate. Studies indicate that climate shocks worsen gender-related burdens and health risks, from anaemia to maternal complications. (8)

Youth, meanwhile, are both India’s strength and vulnerability. With a median age of 28, India’s demographic dividend is seen as its greatest asset. However, climate change threatens to diminish it by shrinking job opportunities, encouraging migration, and exposing young people to health crises. At the same time, youth-led climate activism and innovation remain some of the most influential forces calling for change. Recognising these connections shifts the debate: safeguarding women and youth from climate risks is not just a matter of justice—it is an economic and development imperative.

Therefore, viewing the challenge as “development versus climate” is misleading. Without climate resilience, development progress collapses. Without development, climate objectives lack validity. The way forward involves integration: investing in technology, finance, and diplomacy that promote both climate action and economic growth concurrently.

If India is to demonstrate that development and climate action are not mutually exclusive, technology and innovation must be central to its strategy. Unlike the industrial revolutions of the West, which relied on fossil fuels, India has an opportunity to leap directly into a green development model. The choices it makes in energy, mobility, agriculture, and healthcare will determine whether it can achieve high growth while avoiding the worst climate impacts.

Clean Energy as the Foundation

India has set ambitious renewable energy targets — 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. These goals are supported by substantial investments: solar parks across Rajasthan and Gujarat, offshore wind projects in Tamil Nadu, and initiatives to expand green hydrogen production.

Progress is significant. India ranks as the third-largest renewable energy market globally, with solar capacity expanding nearly 30-fold over the past decade. (10) Solar tariffs are now some of the lowest worldwide, rendering renewables cost-competitive with coal. Nonetheless, renewables face challenges such as intermittency, land acquisition, and grid integration. Investment in storage (lithium-ion, pumped hydro), smart grids, and transmission corridors is essential.

Clean energy also offers significant co-benefits for development. Rooftop solar schemes, such as the Pradhan Mantri Surya Ghar Muft Bijli Yojana, aim to lower household electricity bills while reducing emissions. Decentralised solar microgrids in rural Bihar and Uttar Pradesh have energised villages that were traditionally dependent on kerosene. For women and youth, access to reliable power creates opportunities for education, entrepreneurship, and healthcare.

Mobility and Urban Futures

India’s cities—already home to over 460 million people—are choking under pollution and congestion. Transportation accounts for about 13% of India’s energy-related CO₂ emissions. (11) Electric mobility is key to alleviating this burden.

The FAME II scheme (Faster Adoption and Manufacturing of Electric Vehicles) has spurred a surge in EV adoption, with sales of electric two-wheelers doubling in 2023 alone. (12) Metro rail expansions, bus electrification, and bike-sharing programmes are transforming urban mobility in cities like Delhi and Bengaluru. However, uptake remains uneven: EV adoption is concentrated in wealthier states, while charging infrastructure remains limited in rural areas.

Climate-friendly mobility also advances gender and youth equality. Women often face unsafe and unaffordable public transport, which limits their access to work and education. Incorporating electric buses and secure transit corridors into urban planning can cut emissions and help bridge gender disparities. For youth, green mobility sectors — from electric vehicle manufacturing to battery recycling — create new job opportunities, which are crucial for India’s demographic advantage.

Agriculture and Food Systems

Agriculture accounts for 16-20% of India’s greenhouse gas emissions, mainly from livestock, rice cultivation, and fertiliser use. (13) However, it is also one of the sectors most vulnerable, with climate change projected to reduce crop yields by up to 10-40% by 2050, depending on the scenario. (14)

Technological pathways can mitigate both emissions and vulnerabilities:

• Climate-smart seeds resistant to drought and floods are being scaled through ICAR research.
• Precision agriculture, utilising drones, IoT sensors, and AI models, helps optimise fertiliser use, thereby reducing costs and emissions.
• Solar-powered irrigation pumps not only replace the need for diesel but also allow farmers to sell surplus power back to the grid, generating an additional income stream.

These innovations need to be incorporated into nutrition-sensitive policies. Malnutrition remains a major concern, with 35% of Indian children affected by stunting and 57% of women anaemic. (15) Climate-resilient crops such as millets — promoted during India’s G20 Presidency — can improve both sustainability and nutrition.

Digital Health and Climate Resilience

The healthcare sector shows how technology can support both growth and climate resilience. The Ayushman Bharat Digital Mission (ABDM) is creating interoperable health records and telemedicine platforms, already connecting millions of patients to doctors remotely.

Digital tools also enhance climate-health adaptation. Heat action plans can be integrated with telehealth, allowing vulnerable populations to consult doctors during heatwaves. Early-warning systems can connect to mobile apps for farmers and outdoor workers, offering real-time health advice. Furthermore, India’s expanding health-tech startup scene leads in low-cost diagnostics, AI-powered radiology, and tele-nutrition platforms. These efforts help reduce health inequalities and build resilience against climate shocks, which often worsen malnutrition and infectious diseases.

Innovation Ecosystems and Startups

India’s innovation ecosystem is crucial to reconciling economic growth and climate change. With over 100,000 registered startups, India has become the world’s third-largest hub for startups. (16) Among these, cleantech and health-tech are emerging as transformative sectors. Examples include:

• IIT Bombay’s BETiC (Biomedical Engineering & Technology Innovation Centre), which incubates affordable medical devices designed for rural India.
• Agri-tech startups such as DeHaat and Ninjacart utilise AI and supply chain technology to reduce food waste and enhance farmers’ incomes.
• Energy startups are pioneering affordable storage and EV charging solutions.

Public-private partnerships, challenge funds, and incubators can further accelerate these innovations, especially when connected to rural and underserved areas.

Barriers to Overcome

Despite progress, challenges remain. India’s R&D expenditure constitutes only 0.7% of its GDP, compared to 2-3% in countries such as China and the United States. (17) Patent pipelines for green technologies remain limited, and the domestic manufacturing of solar panels and batteries lags behind China.

Furthermore, innovation must be inclusive. Without targeted support, women entrepreneurs, rural innovators, and marginalised youth risk being excluded from the green economy. Initiatives like the Atal Innovation Mission and Startup India need sharper equity perspectives, ensuring that climate-smart innovation is not limited to urban elite enclaves.

Technology serves as India’s bridge connecting development with climate action. Renewable energy, electric mobility, climate-smart agriculture, and digital health are not only tools for cutting emissions but also promote equity, health, and livelihoods. However, expanding these innovations necessitates investment in R&D, inclusive ecosystems, and strong regulation.

India’s ability to demonstrate that development and decarbonization can go hand in hand will depend on how successfully it mobilises innovation — not just in elite labs but across villages, small enterprises, and frontline systems.

Finance and Diplomacy — Mobilising Resources and Shaping Global Norms

No matter how ambitious India’s policies and technologies may be, climate action cannot succeed without adequate financial support. The shift to low-carbon, climate-resilient growth requires trillions of dollars in new investments. Equally important, India’s role in global diplomacy will determine whether financial flows, technology transfers, and climate governance rules are fair for the Global South.

Climate Finance — The Missing Billions

India’s climate investment requirements are vast. The Council on Energy, Environment, and Water estimates that India will need over USD 10 trillion by 2070 to reach net-zero emissions. (18) Yearly requirements amount to hundreds of billions, far outstripping current flows.

However, climate finance to India has been modest and uneven. In 2021, India received approximately USD 44 billion in green finance, which is only a third of the estimated requirement. (19) Furthermore, much of this consists of private debt, raising concerns about affordability and debt stress for developing countries. Grants and concessional finance, essential for adaptation and equity, remain scarce.

The failure of developed countries to meet their USD 100 billion annual climate finance pledge has strengthened India’s call for climate justice. India contends that historically responsible nations must not only fulfil their financial commitments but also offer predictable and transparent methods to increase support.

Domestic Financial Innovations

Even as it pressures the global community, India has mobilised innovative domestic finance. Sovereign green bonds worth ₹16,000 crore (approximately USD 2 billion) were issued in 2023, allocated for clean transportation, renewable energy, and climate-resilient infrastructure. (20) The Reserve Bank of India has also issued guidelines on climate-related risk disclosures, signalling a shift in financial regulation.

Private finance is also contributing. Indian banks are expanding green credit lines, while blended finance structures are attracting private investment alongside concessional capital. The success of the Pradhan Mantri Ujjwala Yojana, which provided LPG connections to over 90 million households, demonstrates how public subsidies can trigger both financial and environmental benefits.

However, systemic barriers still exist. Long-term funding for renewables and adaptation initiatives remains limited. Insurance coverage is low, leaving vulnerable communities exposed to climate shocks. Increasing finance for resilience—such as heat-proofing cities, flood defences, and climate-smart agriculture—continues to be an urgent need.

Diplomacy: From Follower to Agenda-Setter

India’s global climate diplomacy has evolved considerably over the past two decades. Once seen as a hesitant participant during the Kyoto Protocol era, India has now emerged as a leader on this front. Its Presidency of the G20 in 2023 emphasised climate finance, energy transitions, and sustainable development, bringing these issues to the centre of international dialogue.

One of India’s most significant diplomatic achievements is the International Solar Alliance (ISA), co-founded with France in 2015. Today, ISA has over 110 member countries, offering a platform for solar deployment across the Global South. (22) Similarly, India launched the Coalition for Disaster Resilient Infrastructure (CDRI), which now includes 31 member states, providing technical and financial support for resilient infrastructure projects.

At COP28, India played a crucial role in negotiations on the loss and damage fund, emphasising that it must be new and additional finance, not repackaged development aid. These initiatives strengthen India’s dual role: defending the principle of equity while proposing cooperative platforms.

South-South Leadership

For much of the Global South, India exemplifies a credible model of balancing development with climate action. Countries in Africa, Southeast Asia, and Latin America face similar challenges: poverty reduction, energy access, and climate vulnerability. By sharing its experience in solar parks, energy access, and climate-resilient agriculture, India can establish itself as a leader in South-South cooperation.

India has already extended over USD 28 billion in development assistance to partner countries, with a significant portion allocated to Africa and South Asia, and a growing share dedicated to climate projects. (23) BRICS platforms and the New Development Bank further provide vehicles for alternative financial flows that reduce dependence on Western institutions.

Climate Finance and Gender/Youth Dimensions

Finance and diplomacy are not abstract concepts for ordinary citizens — they shape whose voices are heard and whose needs are prioritised. Women and youth are often excluded from climate finance decisions, yet they bear disproportionate burdens. For instance, during heatwaves, women agricultural workers in India experience higher health risks due to outdoor labour, while youth face disruptions to education and livelihoods.

India’s climate diplomacy must therefore prioritise gender and youth in its financial narratives. Dedicated funds for gender-sensitive adaptation, such as water, health, and clean energy, could enhance equity while advancing SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities). Similarly, mobilising youth as innovators and entrepreneurs in cleantech can leverage India’s demographic dividend for climate leadership.

Barriers and Risks

India’s push for finance and diplomacy faces risks. Protectionist trade measures, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), pose a threat to Indian exporters, particularly those in the steel and cement sectors. If climate measures become tools of trade discrimination, India may find itself penalised even as it struggles to industrialise. Geopolitical tensions further complicate climate diplomacy. India must balance cooperation with developed countries on technology transfer and its roles within the BRICS and Global South blocs, ensuring it is not caught between rival geopolitical camps.

Finance and diplomacy are where India’s climate-development balancing act intersects with the complex realities of power and money. Without trillions in investment, India’s net-zero targets will stay aspirational. Without equity in global governance, the Global South risks being sidelined in a transition designed by and for the developed world. India’s challenge — and opportunity — is to advocate for a fairer financial and diplomatic system while demonstrating credible domestic action. If successful, it can show that development pathways are not a zero-sum game, but rather that climate justice and economic growth can progress together.

Climate change is no longer just an environmental issue; it has become a public health emergency. The Lancet Countdown on Health and Climate Change (2023) reports that India is among the top five countries experiencing the highest heat-related deaths. (24) Heatwaves in 2022 and 2023 have killed hundreds and reduced outdoor labour productivity. Rising vector-borne diseases such as dengue and malaria are spreading into new regions, while floods and cyclones disrupt access to healthcare facilities.

The World Health Organisation estimates that climate change will cause an additional 250,000 deaths annually between 2030 and 2050, mainly due to malnutrition, malaria, diarrhoea, and heat stress. (25) For India, with its dense population and uneven health infrastructure, these risks are amplified. Air pollution alone — closely linked to fossil fuel use — already causes over 1.7 million premature deaths annually in India, representing a significant public health and economic burden. (26)

The public health effects of climate change are closely linked to nutrition and agriculture. Unpredictable rainfall and heat stress considerably decrease crop yields, especially of staples like wheat and rice. This endangers food security for millions and worsens malnutrition, which already impacts over one-third of Indian children under five. (27) Women and children in rural areas face disproportionate risks. Studies indicate that maternal anaemia — affecting over 50 per cent of women of reproductive age in India — worsens due to climate-related disruptions in food and health services. (28) Digital health tools and nutrition dashboards can assist in monitoring vulnerabilities, but without climate-resilient agriculture and food systems, these risks will continue.

Gender affects both exposure to and resilience against climate change. Women are often at the frontline of providing food, water, and household energy in rural India. During droughts or floods, their burdens increase. Research by the UN Development Programme (UNDP) shows that women in India spend up to 200 hours a year collecting water, a time-consuming task that worsens under climate stress. (29) Women continue to be underrepresented in climate decision-making. Fewer than 15 percent of negotiators at UNFCCC meetings from India are women, despite their disproportionate vulnerability. (30) Gender-responsive climate policy is therefore not only an issue of equity but also a practical necessity. For instance, decentralised renewable energy projects led by women’s self-help groups in states like Bihar have boosted both incomes and resilience.

Youth as Climate Stakeholders

With over 65 per cent of its population under 35, India’s youth are both the most vulnerable to climate change and the most capable of fostering innovation. (31) Globally, youth movements — such as Fridays for Future — have shown the strength of civic mobilisation. In India, university-led climate incubators and startups are creating innovations ranging from affordable solar dryers to AI-powered flood prediction models.

However, structural barriers persist, including limited access to finance, a lack of green jobs in rural areas, and inadequate integration of climate issues into education curricula. India’s National Education Policy 2020 emphasises environmental awareness, but implementing this into climate literacy remains slow. (32) Empowering youth requires not just rhetoric but dedicated pathways — fellowships, seed funding, and mentorship programmes that connect young innovators to markets.

COVID-19 as a Teachable Moment

The COVID-19 pandemic clearly demonstrated the interdependence of health, environment, and economic objectives. Lockdowns temporarily reduced emissions, but progress on SDGs such as poverty alleviation, education, and gender equality was significantly rolled back. The World Bank estimates that COVID drove over 70 million people into extreme poverty worldwide.

This comparison is revealing: like pandemics, climate shocks can wipe out years of progress in just a few months. A heatwave that destroys crops or a cyclone that damages infrastructure not only impacts the environment — it also sets back SDGs on hunger, health, gender, and inequality. India’s experience during the pandemic provides a warning: ignoring climate risks is not only an ecological gamble; it is a development risk.

Integrating SDGs and Climate Action

None of the 17 SDGs can be achieved without climate action. Climate change directly jeopardises SDG 2 (Zero Hunger), SDG 3 (Good Health), and SDG 6 (Clean Water and Sanitation). Conversely, progress on SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 11 (Sustainable Cities) helps to strengthen climate resilience.

India’s NITI Aayog SDG Index demonstrates this connection. States that excel in clean energy and infrastructure also show progress in health and gender indicators. (34) Likewise, India’s effort to improve energy efficiency under the Perform, Achieve, Trade (PAT) scheme has lowered industrial emissions while boosting competitiveness. (35) Climate action and development are not competing priorities — they are mutually reinforcing imperatives.

Conclusion

The central question — development versus climate transition: is this a false choice? — finds its answer in India’s journey. Development without climate action is unsustainable, and climate action without development is unjust. The two are inseparable.

India faces a monumental challenge. It must lift hundreds of millions out of poverty, create more job opportunities for youth, promote gender equality, and protect public health — all while decarbonising a vast and expanding economy. Nonetheless, India also has unique strengths: a young population, a vibrant democracy, and the ability for technological innovation.

The path forward requires integration. Climate objectives must be incorporated into every sectoral policy, from health to trade, agriculture to urban development. Finance must support not only solar parks and electric vehicles, but also rural nutrition, women-led enterprises, and youth climate startups. Diplomacy must strengthen the voices of the Global South, while advocating for climate justice and fairness.

The pandemic demonstrated that shocks can reverse progress overnight. Climate change causes a slower yet far more profound disruption. India’s story—and its leadership—will influence not just its own destiny but also that of the Global South. The choice is not between development and climate action; rather, it is whether we recognise, in time, that they are the same fight.

Author Brief Bio: Dr Urvashi Prasad is a Senior Fellow, Pahle India Foundation. She is also an Honorary Professor, De Montfort University, Leicester. Dr Urvashi is a distinguished public policy professional with over 15 years of experience in health, nutrition, gender, sanitation, and development. She has served as Director in the Office of the Vice Chairperson at NITI Aayog, working closely with all three Vice Chairpersons of the Indian government’s premier policy think tank. Dr Urvashi was part of India’s core Covid-19 response team and co-authored the country’s first Voluntary National Review at the UN.

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