Energizing the Future: Comprehensive Insights into India's Low-Carbon Transition, Economic Growth, and Labour Transformation
- Kunal Konar
- Jul 28
- 8 min read
Author: Er. Rajib Roy, Superintending Engineer (Production), ONGC, Navi Mumbai
Contact: Roy_Rajib@ongc.co.in
Abstract
This review paper provides a comprehensive analysis of the multifaceted interplay between energy, economy, and employment in India, while critically assessing the evolution of the country’s labour market. Drawing on a case study of West Bengal’s recent energy expansion, an intensive review of Ajit Kumar Ghose’s Employment in India, and insights from Leggewie and Messner’s "The low‐carbon transformation—A social science perspective" (2012), the paper synthesizes policy frameworks, industry impacts, global comparative experiences, and macroeconomic trends. Data, tables, figures, and empirical evidence from sources such as "The Indian Economy – A Review, Jan 2024" are used to illustrate how strategic energy investments and targeted labour reforms—combined with a consciously steered low‐carbon transformation—can drive sustainable and inclusive growth in India.
Introduction
The dynamic interconnection between energy, economy, and employment is central to a nation’s progress. Reliable energy not only fuels industrial activity and drives economic growth but also underpins a broad array of employment opportunities. In today’s rapidly evolving global landscape, the transition toward sustainable and resilient energy systems is paramount. Regions that implement innovative policies and invest strategically in energy infrastructure are poised to secure a competitive edge.
A compelling example of such forward-thinking is the West Bengal government’s recent decision to allocate land for ONGC’s new oil and gas production facilities. This transformative initiative is designed to enhance energy security, attract industrial investments, generate diverse job opportunities, and strengthen fiscal health. In parallel, understanding the evolving employment landscape is crucial; Ajit Kumar Ghose’s Employment in India provides a critical primer on the structure and challenges of the Indian labour market.
Moreover, the urgency of climate change has led to increased focus on transitioning to a low‐carbon economy. Leggewie and Messner’s "The low‐carbon transformation—A social science perspective" (2012) argues that achieving global climate compatibility requires a comprehensive socio‐technical, economic, and cultural transformation steered by political will and innovative policies. This paper integrates these themes to present a holistic view of India’s developmental trajectory, addressing both traditional energy and employment dynamics and the emerging imperatives of low‐carbon transformation.
The Nexus of Energy, Economy, and Employment in India
Energy as a Catalyst for Economic Growth
Energy is the critical input for economic development, playing a multifaceted role:
Enabling Industrial Production: Reliable energy supplies are essential for industries ranging from steel and cement manufacturing to advanced IT infrastructure.
Boosting Agricultural Productivity: Energy powers mechanization, irrigation, and food processing, thereby increasing crop yields.
Expanding the Services Sector: Key service sectors such as transportation, healthcare, banking, and telecommunications depend on consistent energy access.
Empirical evidence from the International Energy Agency (IEA, 2023) indicates that a 1% increase in energy consumption in developing economies can lead to an approximate 0.8% rise in GDP.
Employment Creation Driven by Energy
The energy sector contributes to job creation through:
Investments in renewable energy and efforts to re-skill the workforce are essential as the economy shifts from fossil fuels to cleaner energy sources.
West Bengal’s Energy Expansion: A Case Study in Economic Transformation
Overview of the ONGC's Initiative
The West Bengal government’s decision to allocate land (Link) for ONGC’s oil and gas production at Ashoknagar, North 24 Parganas, marks a strategic milestone. The readers who are interested to know more about the Ashoknagar Oil Field may start from this Wikipedia Article (Link).
This decision has several anticipated benefits:
Enhanced Energy Security: Strengthening local energy infrastructure reduces dependency on imported fuels and stabilizes prices.
Industrial Attraction: A stable energy base draws investments from sectors such as petrochemicals, steel, and manufacturing.
Job Creation: The initiative is expected to generate a broad range of employment opportunities, from direct energy operations to ancillary support services.
Fiscal Enhancement: Increased industrial activity is likely to boost state revenues through higher taxes, royalties, and licen
Policy Environment Supporting the Initiative
The initiative is reinforced by supportive policy measures:
These policies collectively aim to reduce fossil fuel imports by 50% by 2035, reinforcing long-term economic resilience.
Energy and Economic Growth: An Integrated Perspective
Role of Energy in Driving Economic Performance
Energy is foundational to economic stability and growth:
Industrial Input: Increased energy consumption is linked with higher industrial output and GDP (Stern, 2011).
Economic Stabilization: Reliable energy reduces dependency on volatile imported fuels, curbing inflation and mitigating economic fluctuations (World Bank, 2023).
Facilitating Renewable Adoption: Investments in renewable energy support environmental sustainability and long-term economic resilience (IEA, 2023).
Impact of Energy Prices on the Economy
A strategic shift toward renewables not only promotes energy independence but also creates a diversified, sustainable industrial base.
Energy & Employment: Transitioning to a Green Economy
Traditional Vs. Renewable Energy Employment
The employment landscape in the energy sector is evolving, as evidenced by the following data:
Expansion of Green Jobs
Renewable sectors like solar, wind, and hydrogen are rapidly expanding. Robust retraining programs are needed for workers transitioning from fossil fuels to renewable energy. Innovations such as AI-driven smart grids are redefining workforce requirements.
Strategies for Workforce Re-skilling and a Just Transition
A successful transition necessitates:
Training Programs: Extensive investments in skill development to prepare workers for emerging technologies.
Inclusivity: Promoting greater participation of women and marginalized communities in STEM fields.
Adapting to Automation: Emphasizing high-tech skill development and continuous learning as automation increases.
Critical Review of Employment in India by Ajit Kumar Ghose
Ajit Kumar Ghose’s ‘Employment in India’ offers a comprehensive primer on the evolution of India’s labour market since Independence.
Structure and Key Themes
Conceptual Framework: The book introduces key concepts such as the distinction between modern and traditional sectors, wage versus self-employment, and formal versus informal labour.
Empirical Analysis: Ghose examines employment trends from 1950 to 2016 using data from the NSSO, Labour Bureau, Directorate General of Employment and Training, and Census.
Phases of Employment Trends: The analysis identifies distinct phases in India’s labour market evolution, as will be evident from the following table.
Service-Led Growth and Gender Dimensions: The book highlights the paradox that, despite robust economic growth driven by the service sector, low-skilled employment and female participation remain critical challenges.
Policy Roadmap: Ghose suggests a need for a strategic focus on generating approximately 12.5 million jobs per annum, particularly in low-skilled sectors, to achieve structural transformation.
Critical Evaluation
Strengths: The book’s rigorous empirical analysis and clear explanation of complex employment concepts make it a valuable resource for researchers and students.
Limitations: While data-rich, the detailed statistical analyses may be challenging for non-specialists; however, explanatory boxes help clarify key terms and concepts.
The Low‐Carbon Transformation: A Social Science Perspective
Leggewie and Messner’s article, "The low‐carbon transformation—A social science perspective" (2012), offers a framework for understanding the profound changes needed to transition from a fossil-fuel–based economy to a low-carbon, resource-efficient system.
Theoretical Frameworks and Historical Context
Historical Parallels: The authors compare the current transformation to the Neolithic and Industrial Revolutions, emphasizing that unlike these unplanned transitions, the low-carbon shift must be consciously engineered.
Long-Wave and Evolutionary Theories: Fundamental innovations occur in cycles (every 40–60 years); however, the urgency of climate change requires accelerating these cycles.
Co-Evolution and Multi-Level Dynamics: Societal subsystems (economic, technological, cultural, ecological) co-evolve. Tipping points—such as cost parity between fossil fuels and renewables—can trigger rapid shifts to low-carbon development.
Social and Policy Implications
Changing Narratives: A critical element is the development of new narratives that move away from endless fossil-fuel growth to models emphasizing sustainability, equity, and resource efficiency.
Labour and Social Justice: A just transition must include robust retraining programs, social safety nets, and public or cooperative ownership of energy assets to ensure that vulnerable workers are not left behind.
Global Cooperation: Achieving a low-carbon future requires unprecedented levels of international cooperation and a redefinition of global social contracts.
Dynamics of Transformation
Multi-Level Processes: Transformation occurs through interactions between the established high-carbon regime, emerging change agents, and evolving policy frameworks.
Tipping Points and Co-Evolution: As illustrated by the Transformation Trajectory S-curve (Figure 1 in the original article), once renewable energy sources reach cost parity with fossil fuels, rapid transformation becomes likely.
Integrating Low-Carbon Transformation with India’s Development Agenda
Challenges and Opportunities
India faces a dual challenge: to decarbonize its economy and to ensure inclusive growth. Key issues include:
Technological and Policy Barriers: Accelerating low-carbon innovation while overcoming entrenched interests.
Labour Market Implications: Ensuring that the transition creates new job opportunities and provides robust support for displaced workers.
Global Competitiveness: Aligning India's energy strategy with international sustainability goals while maintaining economic growth.
Strategic Recommendations
Policymakers should consider:
Enhancing Energy Security: Diversify energy sources and invest in decentralized grids.
Promoting a Just Transition: Implement large-scale re-skill programs and ensure public ownership of critical energy assets.
Fostering Innovation: Support research and development in renewable energy technologies and low-carbon solutions.
Strengthening International Cooperation: Engage in global coalitions to share best practices and coordinate low-carbon strategies.
Conclusions
The review of Leggewie and Messner’s "The low‐carbon transformation—A social science perspective" highlights that achieving a sustainable, low-carbon future is not simply a technological challenge but a comprehensive socio-economic transformation. When integrated with insights from West Bengal’s energy expansion and Ajit Kumar Ghose’s analysis of India’s labour market, it becomes evident that India stands at a crossroads. Strategic investments in energy, coupled with targeted labour reforms and progressive policy frameworks, can drive sustainable and inclusive growth.
This extensive review underscores that for India to navigate the complex transition to a low-carbon future, it must adopt a holistic approach—one that harmonizes energy security, economic development, and social equity through employment, thereby paving the way for a resilient and prosperous future.
References
International Energy Agency (IEA), "World Energy Outlook 2023."
NITI Aayog, "India's Energy Policy & Economic Growth Strategy, 2023."
Government of India, "Hydrocarbon Vision 2030."
West Bengal Industrial Policy Report, 2022.
McKinsey & Company, "The Future of India’s Energy Sector."
Deloitte, "Natural Gas and India’s Industrial Expansion, 2023."
BP Statistical Review of World Energy, 2023.
Ayres, R. U., & Warr, B. (2009). The Economic Growth Engine: How Energy and Work Drive Material Prosperity. Edward Elgar Publishing.
Bento, J. P., & Moutinho, V. (2016). "CO₂ emissions, non-renewable and renewable energy, and economic growth in Portugal." Renewable & Sustainable Energy Reviews, 55, 1161-1171.
Stern, D. I. (2011). "The role of energy in economic growth." Ecological Economics, 72, 28-36.
UN (2023). "Energy and Jobs: A Critical Link for Economic Development." https://www.un.org/sustainabledevelopment/energy/
World Bank (2023). "Energy, Economic Growth, and Employment.": https://www.worldbank.org/en/topic/energy
The Indian Economy – A Review, Jan 2024.
Roy, A., Kuruvilla, B., & Bhardwaj, A. (2019). Energy and Climate Change: A Just Transition for Indian Labour. In Navroz K. Dubash (Ed.), India in a Warming World. Oxford University Press. doi:10.1093/oso/9780199498734.003.0017
Leggewie, C., & Messner, D. (2012). The low‐carbon transformation—A social science perspective. Journal of Renewable and Sustainable Energy, 4(4), 041404. doi:10.1063/1.4730138
Claus Leggewie and Dirk Messner, The low-carbon transformation—A social science perspective, Journal of Renewable and Sustainable Energy 4, 041404 (2012)
Ghose, A. K. (2020). Employment in India. Oxford University Press.
Varsha Gupta, Review, LSE Review of Books, September 2020.
Author's Profile
Mr. Rajib Roy was graduated in BE (Chemical Engineering) from Jadavpur University in 2009 and then completed his ME (Chemical Engineering) in 2011 from the same University. He has started his career with Cognizant Technology Solution as Programmer Analys and then joined ONGC as Executive Engineer in 2012.
Mr. Roy is highly skilled Oil & Gas Professional & Researcher with over 13 years of experience in upstream operations, conceptual engineering, well completion, formation damage remediation, and mature field development. Expertise in physics- and chemistry-based modeling, data-driven process optimization, and numerical simulations for production enhancement. Strong background in hydrogen energy, low-carbon fuel production, and sustainable energy transition strategies. Adept at executive administration, policy coordination, and training, including serving as an IADC Well Control Trainer. Passionate about technology-driven innovations in oil & gas field operations and their applications in the energy transition.
Currently, Mr. Roy is working as Superintending Engineer in Institute of Production Engg. & Ocean Technology, ONGC, Mumbai and pursing his doctoral program in IIT Delhi specializing in Hydrogen Energy.
He may be reached via:
~~Editor and Publisher: Kunal Konar, Consultant (Business Development & Analytic Hydrology)
27Jul2025, Bardhaman,West Bengal
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