India: Between Economic Growth and Environmental Preservation

Written By, Renato Zimmermann is a sustainable business developer and an activist for the energy transition.

At the end of 2025, India announced that it had surpassed Japan to become the world’s fourth-largest economy, with an estimated GDP of US$ 4.18 trillion.

India: Between Economic Growth and Environmental Preservation

The government projects that within three years the country could overtake Germany and reach third place globally, behind only the United States and China. The International Monetary Fund (IMF) supports this outlook, forecasting that India’s GDP will rise to US$ 4.51 trillion in 2026, firmly consolidating its lead over Japan.

The country is experiencing an unusual combination of strong growth and low inflation. In the second quarter of fiscal year 2026, GDP expanded by 8.2% the highest level in six quarters — driven primarily by domestic consumption. Growing exports, solid foreign exchange reserves, and a reduced current account deficit reinforce the narrative of a resilient and ambitious economy.

However, this prosperity contrasts sharply with India’s stance at COP30, held in Brazil. During the negotiations, the country firmly rejected a commitment to phasing out fossil fuels, arguing that its energy matrix still relies heavily on coal and that the transition must be gradual. India’s NDCs (Nationally Determined Contributions) the voluntary commitments under the Paris Agreement to reduce greenhouse gas emissions emphasize the expansion of renewable energy, but stop short of clear pledges to eliminate coal.

The emissions contrast

The data underscores the paradox:

• India: 7.57% of global CO₂ emissions in 2025; 2.07 tons per capita

• Japan: 2.42% of global emissions; 7.54 tons per capita

• Germany: 1.49% of global emissions; 7.06 tons per capita

India emits far less per person, but its absolute share of global emissions is already much larger than that of Japan and Germany. This highlights how the country’s rapid growth is placing increasing pressure on the global climate balance.

Internal paradoxes

India is a parliamentary democracy marked by political plurality and significant governance challenges across a vast and diverse territory. Despite economic expansion, the country continues to struggle with severe issues such as hunger, poverty, and disease. It is also the birthplace of traditional health practices like Ayurveda and of religions that have shaped entire civilizations Hinduism, Buddhism, Jainism, and Sikhism.

There is a striking contradiction in seeing a nation whose traditions emphasize simplicity and harmony with nature so eager to accelerate a growth model based on mass consumption and large-scale production. Rising consumption raises ethical and philosophical questions: to what extent is it legitimate to stimulate material desires in a society that still lives with deep inequalities?

Final reflection

India is not alone in this dilemma. All nations face the same challenge: systems of governance tend to prioritize wealth and economic indicators over environmental preservation. The Indian case, however, is emblematic because it clearly exposes the tension between tradition and modernity, spirituality and materialism.

Written By, Renato Zimmermann is a sustainable business developer and an activist for the energy transition.

India: Between Economic Growth and Environmental Preservation