According to India’s national manufacturing policy goals, by 2022, the share of manufacturing in India’s gross domestic product (GDP) will increase to 25% (about 15% in 2018). The number of small and medium enterprises (SMEs) in India accounts for about 90% of the manufacturing industry. Despite the large number, its technology is backward in reducing greenhouse gas emissions, improving the operating environment, and reducing economic costs, and its potential needs to be urgently tapped.
To achieve the development goals of the manufacturing industry and mitigate the impact of the industry’s high carbon on environmental health, SMEs need to adopt new production technologies and processes to improve energy efficiency. Due to insufficient understanding of energy efficiency, limited ability to adopt new technologies, high initial investment costs, and lack of credit opportunities (mainly because financial institutions lack confidence in the financing of energy-saving projects), SMEs have not yet invested in energy efficiency scale.
The Institute for Sustainable Communities (ISC) has collaborated with Intellecap Private Advisory Services, Limited to prepare the report “Harnessing the Power of Markets to Drive SME CleanTech Adoption” in India: Identification and Analysis of Business Models). The report explores the obstacles faced by SMEs in adopting new technologies and develops 7 business models to overcome these obstacles.
The report was completed under the funding of the “Small and Medium Business Clean Technology Project” funded by the MacArthur Foundation. Click to download