Green economy to the economy's rescue

India's economy needs a renewed boost of structural reforms, just when a second generation of green policies is also needed

Can the green economy save India’s economy? For the first time since Q4 of 2012-13, real GDP growth might slip below 5 per cent for Q2 of 2019-20. Growth can stem from government spending, infrastructure investment or consumer expenditure. Government spending is constrained by fiscal responsibility rules. The economy needs $1.4 trillion as infrastructure investment to reach $5 trillion by 2024. But outstanding payments for infrastructure and lack of dedicated financing facilities make it harder to sustain investments. Consumer spending has dropped 6.5 per cent between Q1 and Q2 of 2019-20.

Against this macroeconomic malaise, anything “green” is instinctively presumed to