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India’s transition to a green economy is not only central to achieving its environmental and climate goals but is also emerging as a powerful engine for economic growth and employment generation.

According to a recent report by NLB Services, India’s green sector is expected to generate approximately 7.29 million new jobs by FY2027–28, with the figure projected to rise to 35 million by 2047, aligning with India’s long-term net-zero commitments.

Understanding the Green Economy

A green economy encompasses sectors and activities that contribute to ecological sustainability, low-carbon development, and resource efficiency, while also promoting inclusive employment. It integrates environmental goals with economic planning, thus creating green jobs in areas such as renewable energy, electric mobility, sustainable construction, waste management, and green agriculture.

Sectoral and Regional Dynamics

The most significant employment potential lies in industries such as renewable energy, electric vehicles (EVs), green infrastructure, sustainable textiles, and waste-to-energy solutions. These sectors have witnessed rising investments and policy focus under national missions such as PM-KUSUM, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), and the National Hydrogen Mission.

While metropolitan areas like Mumbai, Bengaluru, and Delhi remain hubs for green employment, tier II and III cities are poised to play a crucial role in the decentralisation of the green economy. Cities such as Jaipur, Coimbatore, Bhubaneswar, Visakhapatnam, and Indore are projected to account for 35–40% of the green job creation by FY28, primarily in logistics, warehousing, sustainable agriculture, and urban waste management.

Evolving Skill Demands

The transition towards green employment is redefining workforce skill requirements. Modern green jobs demand a blend of environmental sustainability expertise and technological proficiency, particularly in AI, IoT, GIS, blockchain, and data analytics. This digital integration is reshaping job profiles and creating pathways for future-ready employment.

In response, industries are shifting hiring strategies to focus more on skill-based recruitment rather than conventional degrees. There is also a growing emphasis on industry-academia collaborations to align curricula with the evolving demands of the green economy, thus fostering climate-literate and digitally equipped professionals.

Gender Inclusion and Equity Challenges

Despite the promising employment potential, women currently constitute only 11–12% of the green workforce in India. Barriers include limited access to STEM education, workplace safety concerns, and socio-cultural constraints. However, progressive employers are increasingly adopting inclusive hiring practices, promoting women-centric skill development programmes, and partnering with training agencies to build a more diverse and equitable green talent pipeline. These efforts are expected to improve female participation by 12–15% in the next 5–6 years.

Economic Significance

India’s green economy is expected to contribute significantly to national GDP. Its valuation is projected to reach $1 trillion by 2030, and expand to $15 trillion by 2070, supporting India’s target of achieving net-zero emissions by 2070. Thus, it offers a dual dividend—economic prosperity and environmental security.

Conclusion:
India’s green transition presents a transformative opportunity to simultaneously address climate change, unemployment, and regional disparities. With appropriate policy support, capacity building, and inclusivity, the green economy can become the bedrock of sustainable and equitable growth.