Greening Post COVID-19 Economic Recovery in India - A Case for Green Fiscal Stimulus

  • May 2020
  • TERI (The Energy and Resources Institute)
  • India

The COVID-19 crisis has shown that growth must be both inclusive and sustainable in the long term. Recently, the Prime Minister announced a special economic package of INR 20 lakh crores for 'Atma Nirbhar Bharat' or a 'selfreliant India’ which would better integrate India with the world. Recovery packages provide opportunity to take much awaited steps to green the economy in sectors that have the maximum impact on sustainable development. Both sustenance and sustainability have to be the cornerstones of economic recovery as India responds to this crisis. In this background, professionals from The Energy and Resources Institute (TERI), National Institute of Public Finance and Policy (NIPFP) and Global Green Growth Institute (GGGI) have brought out this discussion paper. This paper aims to serve the constructivist function of facilitating discussion on the topic of greening post COVID-19 economic recovery so that recovery measures are more aligned with sustainable development. This paper is based on the analysis of 162 environmental fiscal measures announced during the 2008 financial crisis as well as recent economic packages announced by governments across the world as a response to COVID-19. Stakeholder consultation was done through soliciting questionnaire responses and through a webinar organized by TERI and GGGI. The paper clearly brings out the case for direct fiscal stimulus measures in the form of direct spending by the government as well as through investments in green programmes.