The
agricultural sector’s contribution to India’s Gross Domestic Product (GDP) has
dropped from 17.4% in 2006-07 to 14.2% in 2010-11i, while the manufacturing
sector has underperformed, accounting for only 20% of GDP, due to high interest
rates, infrastructure bottlenecks, slow decision-making by the government, and
weak domestic demand Furthermore, the service sector, which accounts for nearly
65% of GDP, has also been losing its momentum due to segments like the banking
and real estate facing demand and investment constraints. Furthermore, the
environment has suffered gravely with the economic progress as from 1990 to
2008, India’s GDP per capita rose by an impressive 120% leading to the natural
capital to decline by 31 % in the same period. Adding to that, currently India
is operating on almost twice its bio-capacity; indicating that the population’s
demand from the ecosystem exceeds the capacity of that ecosystem to regenerate
the resources. To ensure that
inter-linkages between the economic, societal, and environmental aspects of
development are overarching, India needs vital transitions. A green economy
strengthens pro-poor economic growth by building up natural capital and secures
livelihood options of the poor
In
the light of the above Context, this paper attempts to understand the key
sectors for intervention in India and have emerged as the main players in
undertaking green initiatives. These sectors have contributed to economic
growth of the nation while simultaneously causing detrimental effects on the
environment.
Section 2 of the paper makes an analysis of
the six sectors that have the potential of contributing towards achieving the
balance along the three pillars of sustainability.
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