This week, India unveiled its 2024-25 Budget, marking Finance Minister Nirmala Sitharaman’s record seventh consecutive presentation. The Budget, introduced under the re-elected Bharatiya Janata Party (BJP) led NDA coalition government, comes after a surprising electoral outcome where the BJP fell short of an outright majority, reflecting a shift in national sentiment.
Climate Finance and Taxonomy
A focal point of this year’s Budget is a significant increase in climate-related investments. The Ministry of Environment, Forest and Climate Change (MoEFCC) has been allocated ₹3,265.53 crores ($390 million), a 6% rise from the previous year’s allocation. In a bid to enhance transparency and capital flow for climate action, India will develop a climate finance taxonomy. This initiative aims to classify economic activities based on their alignment with environmental goals, thus reducing the risk of greenwashing.
UN Environment Programme emphasizes that such taxonomies are crucial for defining low-carbon and sustainable projects. However, experts like Sehr Raheja from the Centre for Science and Environment caution that while this move aligns with Paris Agreement goals, its effectiveness will depend on its implementation and whether it truly mitigates greenwashing risks.
Agricultural Resilience and Innovation
Agriculture also features prominently in the Budget. The sector is set to receive ₹1.52 crores ($18.15 billion) to bolster productivity and resilience. Key measures include the development of climate-resilient seed varieties, with 109 new high-yielding types to be introduced for various crops in the coming fiscal year. Additionally, the government plans to transition 10 million farmers to natural farming methods, supported by new bio-input resource centers and certification programs.
To further support agricultural efficiency, the Budget outlines plans to relocate large-scale vegetable production closer to major consumption centers. This includes promoting farmer producer organizations and startups to enhance the supply chain for vegetables. The focus also extends to achieving self-sufficiency in oilseeds and pulses, crucial for plant-based protein sources.
Advancing Smart Proteins and Export Opportunities
The Budget includes provisions to support the smart protein sector. India will set up 100 accredited food safety laboratories to facilitate the development of novel foods, including cultivated meat. This is expected to boost both local and international market opportunities for startups, exemplified by Kanpur-based OatMlk’s recent success in exporting plant-based milk to international markets.
Sneha Singh of the Good Food Institute (GFI) India praised the Budget for its emphasis on sustainable agriculture and food processing. She highlighted the introduction of climate-resilient crops and the push for self-sufficiency in pulses and oilseeds as significant strides. Singh also lauded the support for startups and MSMEs, which she believes will drive innovation in the smart protein sector, particularly in cultivated and fermentation-derived proteins.
Overall, the 2024 Budget demonstrates India’s commitment to addressing climate change and advancing agricultural resilience, while also positioning itself to lead in the evolving field of smart proteins.
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