Acknowledgment of Contributors Leadership Peer ReviewersShri Vinamra MishraDirector, Ministry of MSMEShri Rahul MidhaAsst. General Manager, IIFCL Projects LimitedMs. Poonam KapurResearch Officer, NITI AayogShri Ravi KumarConsultant, NITI AayogShri Vipul GuptaConsultant, NITI AayogShri Anurag PandeyYoung Professional, NITI AayogShri Saksham AgarwalYoung Professional, NITI AayogShri Vishal KumarYoung Professional, NITI AayogShri K. Harshvardhan ReddyYoung Professional, NITI AayogShri NGR KartheekSenior Program Manager, WRI IndiaMs. Shivani ShahSenior Program Communications Manager,WRI IndiaShri Deepak KrishnanDeputy Program Director, WRI India Shri Ishtiyaque AhmedProgramme Director (Industry and ForeignInvestment), NITI Aayog Dr. Anshu BharadwajProgramme Director (Green Transition,Energy & Climate), NITI Aayog Shri Rajnath RamAdviser (Energy), NITI Aayog Ms. Aashwita LalDirector (Industry and Foreign Investment),NITI Aayog Shri Ateesh Kumar SinghJoint Secretary, Ministry of MSME Research and Writing teamShri Manoj Kumar UpadhyayDeputy Adviser, NITI AayogMs. Vrushali LokhandeYoung Professional, NITI AayogShri Abhishek BhardwajSenior Program Associate, WRI IndiaShri Ashim RoyProgram Lead, WRI India Disclaimer: This document is not a statement of policy by the National Institution for Transforming India(hereinafter referred to as NITI Aayog). It has been prepared for the purpose of independentacademic and policy-oriented research by NITI Aayog with the technical support of WRI India(legally registered as the India Resources Trust). Neither NITI Aayog nor WRI India makes any representation or warranty, express or implied, asto the completeness or reliability of the information, data, findings, or methodology presentedin this document. While due care has been taken by the author(s) in the preparation of thispublication, the content is based on independently procured information and analysis availableat the time of writing and may not reflect the most current policy developments or datasets. The assertions, interpretations, and conclusions expressed in this report are those of theauthor(s) and do not reflect the views of NITI Aayog or the Government of India, or WRI India.As such, NITI Aayog and WRI India do not endorse or validate any of the specific views or policysuggestions made herein by the author(s). NITI Aayog and WRI India shall not be liable under any circumstances, in law or equity, for anyloss, damage, liability, or expense incurred or suffered as a result of the use of or reliance uponthe contents of this document. Any reference to specific organisations, products, services, ordata sources does not constitute or imply an endorsement by NITI Aayog or WRI India. Readersare encouraged to independently verify the data and conduct their analysis before formingconclusions or taking any policy, academic, or commercial decisions. Roadmap forGreen Transition of MSMEsJanuary 2026 Roadmap forGreen Transition of MSMEs Preface At the 26thUN Climate Change Conference (COP26), India committed to achievingnet-zero emissions by 2070, reducing carbon intensity by 45% by 2030, and increasingnon-fossil energy capacity to 500 GW by 2030. Achieving these ambitious targets willrequire significant efforts across all sectors, with industrial decarbonisation playing acrucial role. Given the diversity of the industrial landscape, a sector-specific approachhas been adopted as the pathway toward a green transition. To enable a comprehensive strategy and develop tailored decarbonisation roadmaps,NITI Aayog has constituted a Technical Working Committee for the Micro, Small, andMedium Enterprises (MSME) sector, comprising stakeholders from a wide range ofbackgrounds: •Central Government– Ministries of Micro, Small and Medium Enterprises;Power; Petroleum and Natural Gas; New and Renewable Energy; and theBureau of Energy Efficiency;•Industry Associations–Experts representing Small-Scale Industries,Small and Medium Industries, Manufacturers’ Associations, and variousstate-level industry bodies.The Committee was guided by a clear set of Terms of Reference (TOR),which included:i)Identifying key emission sources and establishing baseline sectoral emis-sions across production value chains.ii)Assessing existing government and private-sector strategies.iii)Analysing international market trends and preparing a sectoral outlookon India’s competitiveness.iv)Prioritizing decarbonisation levers such as the circular economy and re-source efficiency.v)Developing sector-specific abatement curves outlining emission reduc-tion potential and associated costs.vi)Reviewing relevant policy and regulatory frameworks.vii)Evaluating technology options and their commercial feasibility.viii)Mapping potential capital and funding sources.ix)Formulating a sector-specific action plan with suitable financial mechanisms. This report draws on the Committee’s work as well as extensive consultations withgovernmentagencies,industry associations,finan