• Growth and Development – Measurement of growth: National Income and per capita

income – Poverty Alleviation and Employment Generation in India – Sustainable

Development and Environmental issues.
• Indian Economy – Economic History of India - Changes in Industrial and Labour Policy,
Monetary and Fiscal Policy since reforms of 1991 – Priorities and recommendations of
Economic Survey and Union Budget – Indian Money and Financial Markets: Linkages with
the economy – Role of Indian banks and Reserve Bank in the development process - Public
Finance - Political Economy - Industrial Developments in India- Indian Agriculture -
Services sector in India.
• Globalization – Opening up of the Indian Economy – Balance of Payments, Export-
Import Policy – International Economic Institutions – IMF and World Bank – WTO –
Regional Economic Co-operation; International Economic Issues
• Social Structure in India – Multiculturalism – Demographic Trends – Urbanisation and
Migration – Gender Issues – Social Justice: Positive Discrimination in favour of the under
privileged – Social Movements – Indian Political System – Human Development – Social
Sectors in India, Health and Education.
 AffairsMind
Hello Friends, These notes are for Growth and Development
section of Economics and Social Issues for RBI Grade B. The
notes are based on videos provided to you on YouTube. We focus
on understanding and remembering the concept which will help
you to fetch good marks in the exam. I request you to watch free
videos on YouTube to understand them well and then proceed
with these notes for maximum benefit.
 Economic Growth
Economic growth refers to an increase in the production of economic
goods and services which is compared from one period of time to
another.

Gross Domestic Product

Rule 1 Intermediate goods and services are not considered in

calculation of GDP. Only the value of goods and services
consumed by final consumer are to be added. That is only Final
goods and services are considered.
 Gross Domestic Product

Rule 2 The value of goods and services produced within the domestic
economy is used for GDP calculation. The domestic economy means
the area defined as Indian territory. The definition of Indian territory
for the purpose of GDP is- The entire landmass (including islands) and
12 nautical miles of water surrounding the landmass. Further, 200
nautical miles from coast or 188 nautical miles from territorial waters
comes under Exclusive Economic Zone (EEZ) where only Indian
residents can carry out economic activity. Therefore, this area also
comes under domestic economy.

Gross Domestic Product (GDP) refers to aggregate value of final goods and
services produced within the domestic economy during particular period of
time (usually a year).
 Gross National Product
In GDP calculation, we did not consider the income earned by citizens of India
working abroad. When we adjust GDP for income earned by Indians in abroad and
income earned by foreign nationals on Indian land, we get GNP.
GNP = GDP + Net Factor Income from Abroad
(Net factor income from abroad = Factor income earned by the domestic factors of
production employed in the rest of the world – Factor income earned by the factors
of production of the rest of the world employed in the domestic economy).

Gross Domestic Product Depreciation Net Domestic Product

Gross National Product Depreciation Net National Product

 Net Domestic Product Net National Product

Capital is consumed every year due to wear and tear. In order to adjust
the GDP for capital consumption (called depreciation), we deduct
depreciation from Gross domestic Product (GDP) to arrive at Net
Domestic Product (NDP). Similarly, Net National Product is the difference
between Gross National Product and depreciation.

Personal Income
Personal Income is that part of national income which accrues to households. Since it
is related to households, we make certain adjustments to the national income like
corporate tax, undistributed profits, interest payments, transfer payments.
Personal Income (PI) = National Income – undistributed profits – interest
payments made by the households + Interest receipts by households – corporate
tax + transfer payments made to households by government.
 Net Disposable Income
Out the personal income earned by the households, they have to make tax
payments to the government. Thus, Personal Disposable Income (PDI) is that part
of personal income which is left after making necessary payments to the
government and house holds are free to use this income as they like.

Nominal Vs Real

GDP can be calculated in real or nominal terms. Nominal GDP takes into account
inflation. When this GDP is adjusted for the level of inflation, we get real
GDP. Real GDP is the true indicator of economic growth because it shows the
actual increase in total goods and services produced.
 GDP Deflator

GDP DEFLATOR measures the changes in prices for all of the goods and
services produced in an economy. Using the GDP deflator helps economists
compare the levels of real economic activity from one year to another.
 Expenditure Method (CIGXM)

The expenditure method is a system for calculating gross domestic product (GDP) that
combines consumption, investment, government spending, and net exports. It is the
most common way to estimate GDP. It says everything that the private sector, including
consumers and private firms, and government spend within the borders of a particular
country, must add up to the total value of all finished goods and services produced over
a certain period of time.

So the Formula for Expenditure GDP is

GDP = C + I + G + (X-M)
Where, C = Consumer spending on goods and services
I = Investor spending on business capital goods
G = Government spending on public goods and services
X = Exports
M = Imports
 Production Method (GVA)

GVA Taxes Subsidies GDP

The production approach estimates the total value of economic output and
deducts the cost of intermediate goods that are consumed in the process (like
those of materials and services). The result of this production method is not
GDP but GVA. Gross Value Added (GVA) is the value of goods and services
produced less the cost of all inputs used in making that product or service. So to
calculate values to GDP we have to add taxes and subtract subsidies from GVA.
 Income Method

The income approach to measure the gross domestic product (GDP) is based on the
accounting reality that all expenditures in an economy should equal the total
income generated by the production of all economic goods and services. So here,
national income is calculated as the sum of all factor incomes. Land, labour, capital
and entrepreneur are the various factors of production. Labour gets wages and
salaries, capital gets interest, land gets rent and entrepreneurship gets profit as
their remuneration.
 Production Production Basic Price
Factor Cost
Taxes Subsidies

Product Product
Basic Price Subsidies Market Price
Taxes
 GDP’s Growth

Present Last year

year GDP GDP
GDP Growth 100
Last year
GDP
 Per capita Income

Per capita National Income

Income
Population Size

Per capita income is national income divided by population size. Per capita
income is often used to measure a sector's average income and compare the
wealth of different populations. Per capita income is also often used to measure
a country's standard of living.
 Poverty
Poverty is lack of Income and resources to ensure a sustainable livelihood. It
includes hunger or malnutrition, limited access to education and other basic
services, social discrimination and lack of participation in decision making. The
importance of poverty is so much in society that goal number one in sustainable
development goals is end poverty in all forms everywhere.

Sustainable development Goal

United Nations has formulated two sub goals on Goal No. 1 – Poverty Eradication
1.1 By 2030, eradicate extreme poverty for all people everywhere, currently
measured as people living on less than $1.25 a day.
1.2 By 2030, reduce at least by half the proportion of men, women and children of
all ages living in poverty in all its dimensions according to national definitions.
 How to measure Poverty?

Alagh Committee (1979) Task force constituted by the Planning Commission

constructed a poverty line for rural and urban areas on the basis of nutritional
requirements. It recommended that calorie intake of per day for rural should be
2400 and for urban should be 2100. If a person is consuming below that, then he
or she is below poverty line.

Lakdawala Committee (1993) suggested that Consumption expenditure should

be calculated based on calorie consumption as earlier. So it takes same calorie
intake formula as Alagh has suggested but added clothing and shelter in that. So
his poverty line was not on the basis of calorie intake but the consumption
expenditure.
 How to measure Poverty?

Suresh Tendulkar Committee (2009) recommended to use monthly per capita

expenditure. And he has created monthly expenditure line of 816 for rural and
1000 for urban. So basically, he just expanded Lakdawala method.

Rangarajan Committee (2011-12) recommended to use monthly per family

(household of 5) expenditure, which will be 4860 for rural and 7035 for urban
 Socio Economic Caste Census (SECC) 2011

Rural Urban Caste Census

Registrar General
Ministry of Ministry of Housing
Rural Develop. and Urban Affairs. Census Commissioner

Ministry of Home
Affairs
 Socio Economic Caste Census (SECC)

1.Excluded Households are those that would be identified by assets owned and income
and would not be eligible for welfare benefits of the government.
2.Other Deprived Households are those that would be eligible for graded benefits decided
on the basis of multiple deprivation indicators.
3.Automatically included Households are those that would be the households facing
extreme social destitution and would automatically be included for the welfare benefits of
the government.
 Socio Economic Caste Census (SECC)
Automatically Excluded
1. Vehicle

2. Any member is Government employee

3. Any member is earning more than Rs.10k per month.

4. Paying income tax and professional tax

5. House has pucca walls and roof + Three or more rooms

6. Own a refrigerator

7. Own Landline phone

8. Owns irrigated land above a limit.
9.Kisan Credit Card with credit limit of Rs. 50k and above
 Socio Economic Caste Census (SECC)
Deprived People
7 deprivation indicators:
1.Households with only one room, kucha walls and kucha roof
2.No adult member between the ages of 16 and 59
3.Female headed households with no adult male member
between 16 and 59
4. Households with disabled member and no able bodied adult
member
5. SC/ST household

6.Households with no literate adult above 25 years

7.Landless households deriving a major part of their income from manual casual
labour
 Socio Economic Caste Census (SECC)
Automatically Included

1. Households without shelter

2. Destitute/ living on alms

3.Manual scavengers

4. Legally released bonded labourers

5. Primitive tribal groups

 Socio Economic Caste Census (SECC)
5. Primitive tribal groups
They are the poorest of poor amongst the
Scheduled Tribes (STs). They’re identified based on
three parameters
1.They use pre-agricultural level of technology for
farming.
2.Very low level of literacy
3.There population is either Declining or stagnant.
 Socio Economic Caste Census (SECC)

Caste Census 2011 – Major Findings

1.The number of households in India – 24.49 Crore, 17.97 crores live in villages.
2.10.74 crore households are considered deprived.
3.Approximately 30% of households in rural areas are landless and they majorly get
their income from manual labour.
4.Around 13% of families in villages live in houses of 1 room.
5.56% of rural households lack agricultural land
6.SECC 2011 recorded a higher number of illiterates in than the numbers recorded in
2011 Census of India.
7.60% of rural households are deprived or poor.
8.35% of urban households are poor.
9.1.80 Lakh households are engaged in manual scavenging for livelihood.
Maharashtra has the highest number of manual scavengers.
10.48% of the rural population is female.
 Multidimensional Poverty Index (MPI)

Global Multidimensional Poverty Index 2021 was released by the United Nations
Development Programme (UNDP) and the Oxford Poverty & Human Development
Initiative (OPHI).The Multidimensional Poverty Index was launched by the UNDP and
the OPHI in 2010. MPI is based on the idea that poverty is not unidimensional (not
just depends on income and one individual may lack several basic needs like
education, health etc.), rather it is multidimensional.

A person is multidimensionally poor if she/he is deprived in one third or more (means

33% or more) of the weighted indicators (out of the ten indicators). Those who are
deprived in one half or more of the weighted indicators are considered living
in extreme multidimensional poverty.
 Multidimensional Poverty Index (MPI)

Education (1/3) Health (1/3) Standard(1/3)

Years of schooling Child mortality of living
(1/6) (1/6) Electricity
Child enrollment Nutrition Flooring
(1/18) Drinking water
Sanitation
1 / 3rd or more Multidimensional poor
Cooking fuel
1 / 2nd or more Extreme multidimensional poor Assets
 Employment Generation Schemes

Set - 1 Set - 2

IRDP JRY
JGSY
SGSY EAS
NRLM - R Food for Work
SGRY
Other important MGNREGA
Schemes
 Integrated Rural Development Programme

Swarnajayanti Gram
1999 Swarozgar Yojana (SGSY)

The Integrated Rural Development Programme (IRDP), which was introduced in

1978-79 and universalized from 2nd October, 1980, aimed at providing assistance to
the rural poor in the form of subsidy and bank credit for productive employment
opportunities through successive plan periods. On 1st April, 1999, the IRDP and
allied programmes were merged into a single programme known as Swarnajayanti
Gram Swarozgar Yojana (SGSY). The SGSY emphasizes on organizing the rural poor
into self-help groups, capacity-building, planning of activity clusters, infrastructure
support, technology, credit and marketing linkages.
 Swarnajayanti Gram Swarozgar Yojana (SGSY)

2011

National Rural Livelihood Mission : Ajeevika

National Rural Livelihood Mission: Ajeevika was launched in 2011. The scheme is
an improved version of the earlier Swarnjayanti Gram Swarozgar Yojana (SGSY).It
is the skill and placement initiative of Ministry of Rural development. It evolves
out the need to diversify the needs of the rural poor and provide them jobs with
regular income on monthly basis. Self Help groups are formed at the village level
to help the needy.
 National Rural Livelihood Mission : Ajeevika
2015 Swarna Jayanti
Shahari Rojgar Yojana
Deendayal Antyodaya Yojana
2015 2013
Ministry of Rural Ministry of Housing
NRLM Development NULM and Urban Affairs
Social Mobilization and
Ajeevika Grameen Express
Institution development
Yojana (AGEY)
Employment through skills
Mahila Kisan training and placement
Shashaktikaran Pariyojana Scheme of Shelter for Urban
Startup Village homeless
Entrepreneurship Programme Support to Urban Street
Vendors
 NREP RLEGP

Jawahar Rojgar Yojana (JRY)

1999
Jawahar Gram Samriddhi Yojana (JGSY)
2001
Sampoorna Grameen Rojgar Yojana (SGRY)
Under the Wage Employment Programmes, the National Rural Employment Programme
(NREP) and Rural Landless Employment Guarantee Programme (RLEGP) were started in
Sixth and Seventh Plans. The NREP and RLEGP were merged in April 1989 under Jawahar
Rozgar Yojana (JRY). The JRY was meant to generate meaningful employment
opportunities for the unemployed and underemployed in rural areas through the
creation of economic infrastructure and community and social assets. The JRY was
revamped from 1st April, 1999, as Jawahar Gram Samriddhi Yojana (JGSY). It now
became a programme for the creation of rural economic infrastructure with employment
generation as the secondary objective. In 2001, it was merged with SGRY.
 Employment Assurance Scheme (EAS)
2001
Sampoorna Grameen Rojgar Yojana (SGRY)

On 2 October 1993, the Employment Assurance Scheme (EAS) was initiated by

the then Prime Minister P.V.Narasimha Rao to provide employment to
agricultural hands during the lean agricultural season. The role of PRIs was
reinforced with the local self-government at the district level called the ‘Zilla
Parishad’ as the main implementing authority. Later, EAS was merged with SGRY
in 2001.
 JGSY EAS

Sampoorna Grameen Rojgar Yojana (SGRY)

2006
National Rural Employment Guarantee Act, 2005

The JGSY, EAS were revamped and merged under the new Sampoorna Gramin
Rozgar Yojana (SGRY). The main objective of the scheme continues to be the
generation of wage employment, creation of durable economic infrastructure in
rural areas and provision of food and nutrition security for the poor. The role of PRIs
was retained with the ‘Village Panchayats’ as the sole implementing authority.Yet
again due to implementation issues, it was merged with NREGA in 2006.
 Food for Work Programme (FWP)

2006

National Rural Employment Guarantee Act, 2005

In January 2001, the government introduced FWP (Food for Work Programme)
similar to the one that was initiated in 1977. Food grains are supplied to states
free of cost, however, the supply of food grains from the Food Corporation of
India (FCI) godowns has been slow. Once NREGA was enacted, it was merged in
2006.
 Series of Events
1989 NREP + RLEGP = JRY

1993 EAS was launched

1999 JRY revamped to JGSY

FWP launched 2001 EAS and JGSY merged to SGRY

FWP merged to NREGA 2006 SGRY merged to NREGA

2009 NREGA amended to MNREGA

Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) 2005

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005 was
launched on February 2, 2005. The Act provides 100 days assured employment every year
to every rural household. One-third of the proposed jobs would be reserved for
women. The central government will also establish National Employment Guarantee
Funds. Similarly, state governments will establish State Employment Guarantee Funds for
implementation of the scheme. Under the programme, if an applicant is not provided
employment within 15 days s/he will be entitled to a daily unemployment allowance.
 PMRY REGP

Prime Minister’s Employment Generation Programme (PMEGP)

Prime Minister’s Employment Generation Programme (PMEGP) is a major credit-linked

subsidy scheme launched by merging two schemes namely Prime Minister’s Rojgar Yojana
(PMRY) and Rural Employment Generation Programme (REGP) for generating employment
opportunities by establishing micro-enterprises in urban and rural areas in the non-farm
sector. Ministry of Micro, Small and Medium Enterprises (MSME) administers the
programme. The programme is being implemented by the Khadi and Village Industries
Commission (KVIC) at the national level. Assistance is provided under the scheme only to
the new units, units that have availed government subsidies under either the state or the
central government schemes; existing units are not eligible for subsidy under PMEGP.
 Pradhan Mantri Rojgar Protsahan Yojana (2016-17)

Pradhan Mantri Rojgar Protsahan Yojana has been initiated by the Ministry of Labour
and Employment in the year 2016-17 for incentivizing employers for employment
generation. Government pays the entire employer’s contribution (12% or as admissible)
as the EPS and EPF for all sectors for first three years of employment.

National Food Security Act, 2013

National Food Security Act (NFSA), 2013 has objective To provide for food and
nutritional security in the human life cycle approach, by ensuring access to
adequate quantities of quality food at affordable prices to people to live a life with
dignity. It covers 75% of the rural population and upto 50% of the urban
population for receiving subsidized foodgrains under Targeted Public Distribution
System (TPDS). Thus catering to 67% of the total population.
 National Food Security Act, 2013

• 5 Kgs of foodgrains per person per month at Rs. 3/2/1 per Kg for rice/wheat/coarse grains.
• The existing AAY household will continue to receive 35 Kgs of foodgrains per household per
month.
• Meal and maternity benefit of not less than Rs. 6,000 to pregnant women and lactating
mothers during pregnancy and six months after the child birth.
• Meals for children upto 14 years of age.
• Food security allowance to beneficiaries in case of non-supply of entitled foodgrains or
meals.
• Setting up of grievance redressal mechanisms at the district and state level.
 Sustainable Development

Sustainable development has been defined in many ways, but the most
frequently quoted definition is from Our Common Future, also known as the
Brundtland Report. It says, Sustainable development is a Development which
meets the needs of the present without compromising the ability of future
generations to meet their own needs’.
 Sustainable Development

Millennium Development Goals 2015 - 2030

2000 - 2015

8 Goals 18 targets 48 indicators 17 Goals 169 targets 230 indicators

 Sustainable Development

Goal

1. Global maternal mortality ratio

Target will be less than 70 per 1 lakh

Indicator Maternal Mortality ratio Births attended by

skilled health personnel
 Sustainable Development

The Millennium Development Goals (MDGs) are eight goals to be achieved by 2015
that respond to the world’s main development challenges. The 8 MDGs break down
into 18 quantifiable targets that are measured by 48 indicators.
The Sustainable Development Goals agenda was accepted by all members of the United
Nations in 2012 at the Rio De Janeiro Council Meet with an aim to promote a healthy and
developed future of the planet and its people. It was in 2015 when the Sustainable
Development Goals were implemented after a successful fifteen-year plan of
development called the Millennium Development Goals. In SDG’s there are 17 goals, 169
targets and 230 indicators to be achieved by 2030.
 SDG India Index
The Sustainable Development Goals (SDG) India Index is released by NITI Aayog. The
SDG India Index is developed in collaboration with the United Nations in India. The
NITI Aayog launched its index in 2018 to monitor the country’s progress on the goals
through data-driven assessment, and foster a competitive spirit among the States and
Union Territories in achieving them.

The SDG India Index computes goal-wise scores on the SDGs for each State and Union
Territory. These scores range between 0–100, and if a State/UT achieves a score of 100,
it signifies it has achieved the 2030 targets. The higher the score of a State/UT, the
greater the distance to target achieved. States and Union Territories are classified in four
categories based on their SDG India Index score: Aspirant (0–49), Performer (50–
64), Front-Runner (65–99), Achiever (100).
 Environment Issues

Climate Change
Climate change is a great concern in today’s scenario. This problem has surfaced in
the last few decades. Greenhouse gases are the major cause of climate change.
Environmental changes have several destructive impacts such as the melting of
glaciers, change in seasons, epidemics, etc.

Global Warming and Ozone Layer Depletion

The burning of fossil fuels, emissions from the automobiles and chlorofluorocarbons
add to the greenhouse gases in the atmosphere. This has led to an increase in earth’s
temperature causing environmental changes. This increase in temperature across the
globe is known as global warming. The ozone layer is a layer of concentrated ozone gas.
It protects us from the sun’s harmful ultraviolet rays. This very important layer is being
destroyed by CFCs (chlorofluorocarbons), which are used in industries and everyday life
(e.g. aerosol cans).
 Environment Issues

Water Pollution
The introduction of harmful substances into rivers, oceans, lakes and ponds,
which changes the physical, chemical or biological condition of the water is
called water pollution. The polluted water lacks oxygen and therefore the
organisms die.

Air Pollution
Air pollution is the result of emissions from the industries, automobiles,
and increasing use of fossil fuels. The gaseous emissions have added to an
increase in the temperature of the earth. Not only this, but it had also
increased the risk of diseases among individuals.
 Environment Issues
Solid Waste Management
Solid-waste management is defined as the discipline associated with the
generation, storage, collection, transfer and transport, processing, and disposal
of solid waste in a manner that it does not have a harmful effect on the
environment.

Deforestation
Deforestation is the depletion of trees and forests at an alarming rate. The
trees provide us with oxygen, several raw materials and also maintain the
temperature of the earth. Due to the depletion of trees for commercial
purposes, there has been a drastic change in the earth’s climate.
 Government Programmes
National Action Plan on Climate Change (NAPCC), 2008
1. National Solar Mission (MNRE)

Mission’s goal is for increasing the development of solar technologies such as

increasing production of photo-voltaic to 1000 MW/year, Establishing the solar
research center and promoting international collaboration.

2. National Mission for Enhanced Energy Efficiency (MoP)

This mission includes energy consumption reduction in industries, trading energy-

savings certificates, energy incentives like lower taxes on energy-efficient
appliances
 Government Programmes
National Action Plan on Climate Change (NAPCC), 2008
3. National Mission on Sustainable Habitat (MoHUA)

This mission includes better waste management, power from waste, extending
energy conservation building code, incentivizing fuel efficient vehicles, energy
efficiency as part of urban planning, public transport promotion

4. National Water Mission (Jal Shakti)

This mission main goal is improving water use efficiency with the use of pricing
and other measures
 Government Programmes
National Action Plan on Climate Change (NAPCC), 2008
5. National Mission for Sustaining the Himalayan Ecosystem (MoS&T)

This mission’s objective is to conserve biodiversity, forest cover, and glaciers of

the Himalayan region

6. National Mission for “Green India” (MoEFCC)

This mission’s main objective is expanding forest cover from 23% to 33% of
India’s territory.
 Government Programmes
National Action Plan on Climate Change (NAPCC), 2008
7. National Mission for Sustainable Agriculture (MoA)

This mission includes climate-resilient crops, crop insurance and sustainable

agricultural practices like crop diversification.

8. National Mission on Strategic Knowledge Platform for Climate Change (MoS&T)

This mission includes Climate Science Research Fund, better climate modeling,
international collaboration and private sector participation in the technologies for
the adaptation and mitigation.
 Government Programmes
Swatcha Bharat Mission / Swatch Bharat Abhiyan / Clean India Mission
Nirmal Bharat Abhiyan

Open defecation free

Solid waste
Management
150th Birth
Anniversary

Rural Urban
Ministry of Drinking Ministry of Housing
water and sanitation and Urban Affairs
 Government Programmes
Swatcha Bharat Mission / Swatch Bharat Abhiyan / Clean India Mission

It is a country-wide campaign launched by

the Government of India in 2 October 2019, the 150th
anniversary of the birth of Mahatma Gandhi. The
mission aim is to eliminate open defecation and
improve solid waste management. It is a restructured
version of the Nirmal Bharat Abhiyan launched in
2009 that failed to achieve its intended targets. The
mission was split into two: rural and urban. In rural
areas “SBM – Gramin” was financed and monitored
through the Ministry of Drinking Water and
Sanitation; whereas “SBM – urban” was overseen by
the Ministry of Housing and Urban Affairs.
 Government Programmes
Unnat Jyoti by Affordable Lighting for All (UJALA)

Launched in 2015 and initially labeled as the LED-based

Domestic Efficient Lighting Programme (DELP), it aims to
promote the efficient usage of energy for all i.e., its
consumption, savings and lighting. Energy Efficiency
Services Limited (EESL), a government company under
the administrative control of the Ministry of Power, has
been designated as the implementing agency for this
programme. Every domestic household having a
2015
metered connection from their respective Electricity Ministry of Power
Distribution Company is eligible to get the LED bulbs EESL
under the Scheme. LED Bulbs
DELP
 Government Programmes
Renewable Energy Development 175 GW till 2022
•India has set the target of adding 175 GW of renewable energy capacity by 2022.
•Solar cities aims to reduce a minimum of 10% of the projected energy demand of the city
through renewable energy installations using wind, solar and municipal waste and energy
efficiency measures.
•Ultra mega solar parks are a series of planned solar power projects each with capacity of
more than 500 MW. Government plans to establish 25 such plants adding 20GW of the
solar power capacity.
•National Biofuel Policy seeks to achieve 20% of the ethanol blending and promote the use
of non-food feedstock for the production of the biofuels. Presently there is only 5% of the
ethanol blending.
•National Offshore Wind Energy Policy 2015: India has successfully developed the onshore
wind power program with installation of the 23 GW power supply. The new policy seeks
to develop wind farm deeper into the sea to reduce the dependence on the land for the
wind energy.
 Government Programmes
Green Rating for Integrated Habitat Assessment (GRIHA)
It evaluates the environmental performance of a building holistically over its entire
life cycle, thereby providing a definitive standard for what constitutes a green
building. GRIHA, developed by TERI has been adopted by government as the national
rating system for the green building

Energy Saving Certificates (ESCerts)

Under the Perform, Achieve and Trade (PAT) mechanism, major energy intensive
industries are assigned energy efficiency targets. Any industry achieving the efficiency
in the excess of their target can trade the excess on Indian energy exchange to
monetize it.
 Government Programmes
Green Bonds
Green Bonds allows the industry to raise capital from the market to fund green
projects such as for renewable energy projects. It helps to raise low cost debt to
meet the massive requirement for the renewable energy projects.

Zero Defect and Zero Effect (ZED)

Government would provide incentives to MSMEs to adopt Energy Efficient
manufacturing

National Green Highway Mission

Planting trees along the national highway by demarcating the 1% project cost. This
green belt would also act as a green muffler for the noise pollution, store CO2 and
provide livelihood opportunities to the communities nearby the highways.
 Government Programmes

Compensatory Afforestation Management and Planning

Authority (CAMPA) Act

To compensate the loss of forest area by company and to maintain the sustainability,
the Government of India came up with a well-defined Act, known as CAMPA
(Compensatory Afforestation Fund Management and Planning Authority). According to
the Act’s provision, a company diverting forest land must provide alternative land to
take up compensatory afforestation. For afforestation, the company should pay to plant
new trees in the alternative land provided to the state.
 Government Programmes
Namami Gange Programme

Namami Gange Programme is an Integrated Conservation Mission, approved as

a ‘Flagship Programme’ by the Union Government in June 2014 for accomplishing
the twin objectives of effective abatement of pollution and conservation and
rejuvenation of National River Ganga. It is being operated under the Department of
Water Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti.
The program is being implemented by the National Mission for Clean Ganga (NMCG),
 Government Funds
National Adaptation Fund for Climate Change (NAFCC)
This fund is used to assist State and UTs particularly vulnerable to the adverse
effects of climate change in meeting the cost of adaptation. NABARD has been
appointed as National Implementing Entity for the fund.

National Clean Energy Fund (NCEF)

Fund has been created using the carbon tax on coal for funding R&D projects in
clean energy technologies of public or private sector. An assistance of up to 40%
of the total project cost will be provided either in the form of loan or grants.
 International Agreements
Paris Climate Agreement 2015

India ratified the deal in 2016. As per the INDCs submitted by

India, it has committed to the following targets:
•Reduce the emissions intensity of its GDP by 33 to 35 per
cent by 2030 from 2005 level
•40% of cumulative electric power installed capacity from
non-fossil fuel sources by 2030 with financial and technical
help from other countries and GCF
•Additional carbon sink of 2.5 to 3 billion tons of CO2 equivalent by 2030
•Enhancing investments in development programs in sectors vulnerable
to climate change, like agriculture, water resources etc.

•Joint collaborative R&D for such future technologies

 International Agreements
Kigali Agreement

Kigali agreement makes an amendment to the successful and legally binding

Montreal protocol to phase out Hydro fluorocarbons (HFCs) – thousands time more
potent GHG than CO2. India has agreed to phase down HFCs starting 2028 and
reduce it by 85% of 2024-2026 levels till 2047
•The agreement is legally binding.

International Solar Alliance (ISA)

It is an alliance of about 121 nations heralded by France and India, lying partly
or completely between the tropics to harness their solar energy potential by
collaborative efforts in the field of solar technologies.
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