The Role of Government and Ecopreneurship in Sustainable Economic Development of India

Abstract

Introduction: Ecopreneurship is doing the business with eco-friendly practices and providing solutions for environmental and social issues. Ecopreneurship, or green entrepreneurship, refers to business activities that are carried out in such a way as not to impact negatively on the environment and to conserve limited natural resources, so assisting in achieving sustainable economic development. Economic development without considering environmental issues such as pollution and depletion of natural resources results in adverse impact on future generations. These entrepreneurs assist in preservation of environment and natural resources, employment and revenue generation, and enhancement of markets for their products or services.

Methodology: This paper is descriptive in nature and based on secondary data collected from various published journal papers and books, magazines, daily newspapers and online websites. The study is organised around two objectives: to know the significance of ecopreneurship, and to understand the government schemes that promote ecopreneurship. The literature reviewed includes Shrestha and Rijal (2022) on firms applying their own resources to solve environmental and social problems, Schaltegger(2002) on ecopreneurs as agents of change, Singh and Panwar (2018) on India's favourable situation for green business, Sharma, Rai and Singh (2020) on structural, policy and financial challenges, and Solaja (2017) on poverty elimination and employment opportunities. Government initiatives across five ministries and departments are then examined in turn.

Results & Discussion: Four dimensions of significance are documented. On protection of environment, selected startups include Tree Tag (Kerala, 2021), Chakr Innovation (Delhi, 2016) and Beco (Maharashtra, 2018). On employment and revenue generation, renewable energy generates ₹12,000 crores and over 1,00,000 jobs, organic farming ₹4,500 crores and over 50,000 jobs, and sustainable fashion ₹2,000 crores and over 25,000 jobs. On environmental impact, renewable energy projects increased renewable generation by 30%, recycling initiatives reduced urban waste by 25%, and eco-tourism and organic farming preserved 10 endangered species. On market expansion, green energy solutions grew by 50% with a consumer base of 20 million, organic food products by 40% with 50 million, and eco-friendly packaging by 30% with 30 million. Government initiatives include DPIIT with 1,40,803 recognised start-ups as of 30 June 2024, DAY-NRLM, PMEGP with margin money subsidies of 15% to 35%, RKVY providing ₹5 lakh at pre-seed and ₹25 lakh at seed stage, and NIDHI.

Conclusion: Ecopreneurs play a vital role in providing solutions to environmental challenges while improving sustainable economic development. For sustainable ecopreneurship development, reforms are needed in regulations, funding and cultural attitudes. To overcome the barriers of bureaucratic and financial issues, policies need to be simplified and financial solutions such as green bonds need to be issued. Various departments of the Government of India have launched schemes such as the Department for Promotion of Industry and Internal Trade, the Deendayal Antyodaya Yojana-National Rural Livelihood Mission, and the Prime Minister's Employment Generation Programme, which together provide the foundation for a supportive ecopreneurial ecosystem.