Green economy may create 1.3 cr jobs by 2035

India's green economy could generate more than a crore jobs by 2035, according to a new report. However, significant challenges remain, including limited access to technical education for women, insufficient green skilling, and a lack of finance and policy specifically targeting the green workforce. To build a green workforce on a large scale, India must revise its existing National Policy for Skill Development and Entrepreneurship from 2015, focusing on green jobs and implementing a National Green Jobs and Skilling Mission.

During the report's launch, Shamika Ravi, member of the Economic Advisory Council to the Prime Minister, emphasized that the primary constraint to business growth is the lack of skilled manpower. Unfortunately, technical education in India's labor market is a major gap, with only 4.5% of the working-age population having technical education as of 2025.

This gap is even more pronounced among women, who only constitute 3.1% of the working-age population with technical education. Despite sector-specific programs like the National Green Hydrogen Mission and the Jal Urja Mitra Skill Development Programme training around 81,000 technicians, there is still a major gap between the demand and supply of green-skilled workers.

By 2030, direct employment in key green sectors is projected to reach approximately 35 lakh, increasing to over 54 lakh by 2035. However, dedicated green skilling remains small-scale. With the upcoming Union Budget 2026-27 allocating Rs 9,540.5 crore to major Ministry of Skill Development and Entrepreneurship schemes, the increase is primarily in PM-SETU, which has risen from 52% to 64% of the total allocation.

This allocation, while substantial, is concentrated in specific programs and does not adequately address the reskilling needs of existing workers or the demand for green-skilled manpower.