Net zero push may add $16 trillion to India’s market cap by 2040s, says Jayant Sinha

India’s GDP is set to leap from $4 trillion today to more than $20 trillion in the 2040s if the country aggressively pursues net zero development, former Minister of State for Civil Aviation Jayant Sinha said at a recent event in Delhi. He framed the global shift towards green technologies not as a regulatory burden, but as a trillion-dollar opportunity that could transform India’s economy.

“Twenty years ago, India’s GDP was just $0.7 trillion, and the total market capitalisation of listed securities stood at around $1 trillion. Today, the market cap is about $5 trillion,” Sinha pointed out. “If we continue to grow at 6 to 7 percent annually while embracing green technology, in the next two decades we could add $12 to $16 trillion to India’s market cap.”

Sinha argued that climate change, often seen as a threat, should be seen as a catalyst for economic transformation. “Net zero is net positive,” he emphasised. “It is positive for GDP growth, job creation, energy security, and cleaner air.”

Today, 50% of the vehicles being sold in China are electric vehicles. In India, that number is 3 or 4%. “It's nowhere close to where China is. But China has shown us what the future is like and we have to get there as well.”

The Bangalore’s Terminal 2 is seen as a model for India’s green future. “It is almost the greenest and most resource-efficient airport in the world. All its energy comes from solar power, it harvests and recycles water, and it uses digital technologies to boost efficiency,” he explained.

One of the innovations driving this shift is the Digi Yatra programme, which allows passengers to board flights using facial recognition, reducing processing time by half. “If it takes 20 minutes to board without Digi Yatra, now it takes 10 minutes. That doubles the terminal’s capacity without the need to build a second one,” Sinha said.

But Sinha stressed that India cannot achieve net zero alone. “We need capital and technology from the Global North,” he said. “Only through collaboration with the United Nations, the World Bank, and international investors can we reach our goal of net zero by 2070, as set by the Prime Minister.”

As an example of such cooperation, Sinha mentioned a recent $300 million deal signed with the International Finance Corporation, part of the World Bank, aimed at accelerating India’s green transformation.

“If we can channel these trillions of dollars of investment into green technologies, we will drive a virtuous cycle of growth, good for the economy, the environment, and future generations,” Sinha concluded.