A Study on the Role of Indian Government in Supporting Ecopreneurs: Policies, Incentives, and Market Development

Abstract

Introduction: Ecopreneurship, or environmentally responsible entrepreneurship, is pivotal in tackling the pressing sustainability challenges that our planet faces today. Ecopreneurs are innovators who integrate ecological values into their business models, striving to minimize environmental impact while achieving economic success. Despite the growing importance of ecopreneurship, many ecopreneurs encounter substantial barriers, such as high startup costs, intense market competition, and complex regulatory environments. In this context, the role of government becomes critical, and this paper examines how governments, particularly in India, support ecopreneurs.

Methodology: The paper reviews the conceptual literature on ecopreneurship, drawing on Schaper (2002) on the essence of ecopreneurship, Isaak (2002) on the distinction from traditional entrepreneurship, Kirkwood and Walton (2010) and Schaltegger (2002) on motivations, Dean and McMullen (2007) on institutional influences, Bocken et al. (2014) and Hall et al. (2010) on challenges, Elkington (1997) on the triple-bottom-line and Ghisellini et al. (2016) on circular economy models. It then examines four dimensions of government support in India: policy frameworks, financial incentives, infrastructure and market development, and education and capacity building. The analysis is illustrated with company cases including Gravity Homes, Vayve Mobility, Gencrest, Sarla Aviation, Jothipapers, Jiwya, Blue Cat Paper, Zomato's Project Zeal and DLF.

Results & Discussion: India's policy framework includes the National Action Plan on Climate Change of 2008 with its eight national missions, Make in India launched in 2014, and Swachh Bharat Abhiyan. Under Make in India, India received $60 billion in FDI in FY 2016-17, its Ease of Doing Business ranking improved from 130th in 2016 to 63rd in 2019, manufacturing grew at 6.9% per annum between 2014-15 and 2019-20, and Make in India Week attracted investment commitments worth over ₹15.2 lakh crore. India targets 500 GW of non-fossil fuel-based energy and 40% of electricity from non-fossil fuels by 2030; solar capacity rose from 2.5 GW in 2014 to 94.16 GW as of November 2024, with wind at 47.95 GW. The UJALA scheme has distributed over 360 million LED bulbs, reducing energy consumption by 55% and emissions by 40%. Under PMMY, ₹1,08,472.51 crore was disbursed under Shishu, ₹1,00,370.49 crore under Kishore and ₹13,454.27 crore under Tarun in 2023-24. The Solar Park Scheme has sanctioned 50 parks totalling 37,990 MW across 12 states.

Conclusion: Government support is essential for the success of ecopreneurs. By implementing favorable policies, providing financial incentives, investing in infrastructure, and fostering education, governments can create a thriving ecosystem for sustainable businesses. Despite government efforts, several challenges remain, including policy inconsistencies, bureaucracy, and limited financial resources; governments should streamline regulatory processes, expand access to green financing by partnering with banks and investors, strengthen public-private collaborations, and enhance consumer awareness programs. Strengthening these efforts will not only benefit ecopreneurs but also contribute to global sustainability goals, though there is still scope for improvement, particularly in terms of job creation and increasing the share of eco manufacturing in India's GDP.