Sustainability appears, at first glance, to be an uncomplicated concept. After all, it is the practice of balancing economic growth, environmental protection, and social well-being. The idea is simple: use resources wisely, reduce waste, and ensure that future generations inherit a liveable planet. Yet, in practice, sustainability is proving to be one of the most complex challenges for Indian businesses today. The reasons range from regulatory inconsistencies to entrenched business practices, consumer awareness gaps, and the sheer scale of transformation required. No wonder, ‘sustainability’ is probably the most fashionably bandied about word in the corporate world after ‘strategy’.
India is not only the world’s fifth-largest economy but also home to over 140 crore people. With rapid urbanisation and industrialisation, the pressure on natural resources is immense. The government, through various initiatives such as the National Action Plan on Climate Change and the Sustainable Development Goals (SDGs), has made commitments to a greener future. Yet, India remains one of the largest carbon emitters globally, and its per capita waste generation continues to rise. The complexity of addressing sustainability lies in between economic ambition and environmental responsibility.
For Indian businesses, the challenge is multifaceted. On one hand, there is growing pressure from global investors and regulatory bodies to embrace Environmental, Social, and Governance (ESG) principles. On the other hand, businesses, particularly those in traditional sectors like manufacturing, steel and textiles, face significant hurdles in transitioning to sustainable models. Many lack access to the necessary technology, infrastructure, and financial resources. Retrofitting factories, adopting renewable energy, and reducing water usage are capital-intensive endeavours, often seen as costly disruptions rather than investments in long-term resilience.
Consider the textile industry, which contributes around two per cent to India’s GDP and is a major employment generator. It is also one of the most polluting industries, consuming vast amounts of water and producing toxic waste. Despite efforts to promote organic cotton and water-efficient dyeing techniques, the industry struggles to balance profitability with sustainability. In many cases, companies find it more expedient to continue business as usual than to invest in costly green technologies.
Furthermore, the regulatory environment, though well-intentioned, can often be more of a hindrance than a help. Indian businesses face a patchwork of environmental laws and standards, which are inconsistently enforced. The push for corporate sustainability reporting through initiatives like the Business Responsibility and Sustainability Report (BRSR) by SEBI has been a step in the right direction, but compliance often remains superficial. For many firms, sustainability reporting has become more of a box-ticking exercise than a meaningful strategy shift.
Moreover, the Indian consumer is only beginning to appreciate the value of sustainable products. While global consumers may pay a premium for green goods, Indian buyers remain price-sensitive. Businesses often struggle to justify the higher costs of sustainable production when faced with consumers unwilling to pay more. This creates a paradox where companies must balance their sustainability commitments with the need to remain competitive in a price-driven market.
There is also the issue of scale. India's small and medium enterprises (SMEs), which form the backbone of its economy, often operate on razor-thin margins. While large corporations may have the resources to invest in sustainability, SMEs frequently lack the capital and expertise to make the transition. Yet, for any meaningful shift towards sustainability in India, these smaller businesses must be brought into the fold.
The difficulty is further compounded by the global geopolitical landscape. As the world pushes for decarbonisation, India faces the challenge of transitioning its coal-dependent energy sector. Coal accounts for nearly 70 per cent of the country's electricity generation, and while India is making strides in expanding its renewable energy capacity, with solar power in particular, the pace of transition will take time, to ensure a stable transition of energy security for its large population.
Sustainability, despite its apparent simplicity, demands systemic change. Indian businesses need to move beyond short-term gains and recognise that long-term profitability and resilience are inextricably linked to sustainable practices. The shift requires not only technological innovation and capital investment but also a change in mindset. Companies must view sustainability not as a compliance burden but as urgent.
The road ahead is difficult, but there are signs of progress. Few leading Indian conglomerates and corporates have made significant commitments to sustainability, setting ambitious carbon-neutral targets and investing in newer business models. Additionally, the growing influence of global supply chains means that even smaller Indian businesses are beginning to feel the pressure to adopt sustainable practices.
Ultimately, the path to sustainability in India is hard because it demands a rethinking of how businesses operate, how they engage with consumers, and how they interact with regulators. It is a long-term game, one that requires patience, investment, and a willingness to embrace change. Sustainability may seem simple in theory, but for Indian businesses, the execution is a complex and ongoing challenge. Yet, those who succeed in mastering this complexity will find themselves well-positioned in an increasingly resource-constrained world.
Sustainability demands that every stakeholder step into the role of a true 'karta,' bearing collective accountability for how we treat the Earth today and the shape in which we leave it for future generations. It is not just an environmental responsibility, but a moral duty that requires collaboration, foresight, and stewardship.
