Green goods in high demand but Indian exports trail, in huge missed opportunity for trade

Embracing green trade could accelerate India’s export diversification and growth as global demand for low-carbon goods and services is rising. However, India’s exports of environmental goods and services still trail behind that of its peers, highlighted a recent World Bank report on India’s trade opportunity.

The report outlines several initiatives to enhance India’s trade prospects such as integration in the global value chain. Among them, it emphasises the potential of environmental goods and services exports. “With the increasing global demand for low-carbon goods and services, India can capitalise on the opportunity by investing in clean technology, promoting sustainable production and consumption, and implementing policies to reduce GHG [greenhouse gase] emissions,” it says.

The report adds that environmental goods and services could help diversify exports while prioritising sustainability and socio-economic needs throughout the supply chain.

India lags behind Bangladesh, Costa Rica, Indonesia, Thailand, Vietnam, and South Africa in environmental goods and services exports. However, experts say the reality is more complex.

Abhijit Das, an expert on international trade policy and World Trade Organisation issues and former head of the Centre for World Trade Organisation Studies, explains that each country has unique initial conditions and strengths, including the size of its domestic market. “Some countries are more reliant on exports...

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