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Barriers and Drivers for Net-Zero in Indian SMEs

January 4, 2026
in Earth Science
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In the intricate landscape of contemporary industrial practices, the urgency for environmental sustainability has never been as palpable as it is today. Recent research highlights the precarious tension between economic growth and ecological stewardship, particularly through the lens of net-zero emissions targets. This critical juncture is where small and medium-sized enterprises (SMEs) within India’s manufacturing sector find themselves. Their journey towards achieving net-zero emissions is not merely a regulatory compliance matter, but a complex interplay of societal, technological, and economic factors that both hinder and facilitate progress.

The study by Kumar et al. meticulously dissects the multitude of roadblocks that plague Indian manufacturing SMEs as they strive for net-zero sustainability. One of the prominent barriers identified is the pervasive lack of awareness and understanding of the net-zero concept among these smaller enterprises. Many business owners grapple with the fundamental principles of carbon neutrality, which manifests in ineffective implementation of green practices and technologies. This knowledge gap serves as a significant impediment in a sector where decision-makers often lack the specialized expertise required to transition towards sustainable methodologies.

Furthermore, the research underscores the financial constraints that disproportionately affect SMEs compared to their larger counterparts. The initial postulations regarding the capital investments required for sustainable technologies can deter business owners who operate on tight budgets and limited timelines. These financial hurdles are compounded by the limited access to credit for small businesses, inhibiting their ability to invest in necessary advancements in technology or infrastructure. The cumulative effect of these financial barriers leads to stagnation rather than innovation, further entrenching the status quo in a fast-evolving global market.

On the flip side, the study reveals numerous enablers that can propel Indian manufacturing SMEs toward net-zero goals. Among the most influential is governmental support and policy frameworks that incentivize sustainable practices. These may include subsidies for green technologies, tax incentives for companies that meet specific sustainability benchmarks, and grants for SMEs willing to undertake sustainability training. Such initiatives, if structured effectively, can ease the financial burdens that often stifle innovation and enable smaller manufacturers to progress on their sustainability journeys.

Technological advancements are another significant enabler identified in Kumar et al.’s analysis. The emergence of cost-effective green technologies plays a crucial role in facilitating an efficient transition towards net-zero. These technologies are no longer the exclusive domain of large corporations but are becoming increasingly accessible to SMEs, allowing them to implement solutions that reduce carbon emissions without incurring drastic financial strains. By adopting energy-efficient production methods and waste reduction strategies, SMEs can effectively carve a niche for themselves in a burgeoning green economy.

Moreover, the role of collaborative networks cannot be understated in this transition. The study highlights that businesses that engage in partnerships, whether with other SMEs, larger corporations, or non-governmental organizations, find themselves better equipped to tackle the challenges of sustainability. Collaborative approaches allow smaller enterprises to share resources, knowledge, and best practices, creating a stronger, unified front against the common barriers of sustainable development. This community-driven model not only enhances operational efficiencies but sheds light on innovative practices that may have otherwise remained undiscovered within isolated operations.

Education and training remain critical components in the quest for net-zero emissions. As emphasized by the researchers, targeted educational initiatives can significantly raise awareness and capabilities among SME employees and management teams. Industry-specific training programs can equip personnel with practical skills to implement sustainable practices within their operations. This investment in human capital does not only benefit the environment; it fosters a culture of sustainability within organizations, driving deeper engagement and commitment to net-zero goals across all levels of the workforce.

As the research indicates, public perception and consumer preferences are evolving in conjunction with the push for sustainability. Today’s consumers are more conscientious about the environmental footprints of the brands they support. This shift offers an unprecedented opportunity for SMEs that embrace sustainable practices to differentiate themselves in a crowded marketplace. By openly communicating their commitment to sustainability, these enterprises not only comply with regulatory frameworks but can also enhance their brand equity and attract a loyal consumer base.

The findings from Kumar et al. also shed light on the potential global implications of India’s transition to net-zero manufacturing. As one of the fastest-growing economies and a significant contributor to global emissions, the strategies adopted by Indian SMEs can serve as a model for similar enterprises around the world. The challenges and solutions articulated in this research underscore the universality of the quest for sustainable industrial practices, thereby enriching global dialogues on sustainability and innovation.

As the world inches closer to critical climate thresholds, the lessons learned from India’s journey towards net-zero manufacturing are invaluable. While substantial challenges remain, the roadmap paved by proactive stakeholders offers a beacon of hope. Each step taken by these SMEs is a testament to the resilience and adaptability essential in today’s economic climate. The future of sustainable manufacturing in India will likely depend on the ability of SMEs to continue evolving alongside their larger counterparts and to instigate systemic change that reverberates throughout the global economy.

The discourse on sustainable practices in manufacturing is not limited to policies and technologies; it emphasizes an urgency for a cultural shift within industries. The findings from Kumar et al. highlight that achieving net-zero emissions is not just a technological challenge but a transformational endeavor that requires a deep-rooted commitment to sustainable practices. The integration of sustainable thinking within the corporate culture of SMEs will be paramount in achieving lasting changes that have a tangible impact on our environment.

Reflecting on the necessary transformations, it becomes evident that the pathway to net-zero emissions is inherently intertwined with innovation, collaboration, and education. In harnessing these factors strategically, Indian SMEs can position themselves at the forefront of an emerging green economy. The lessons learned within this research serve not only to illuminate the obstacles faced but also to inspire a new wave of entrepreneurial spirit that embraces sustainability as a core operational philosophy.

As the world observes and learns from India’s manufacturing sector, the insights gained will contribute to a broader understanding of sustainability. For SMEs globally, the journey toward net-zero emissions is becoming increasingly imperative—not just as a compliance requirement, but as a vital element of a resilient and forward-thinking business strategy. The findings of Kumar et al. pave the way for further research and dialogue in this critical space, setting the stage for a sustainable transformation in manufacturing sectors around the globe.

Through dedicated efforts and integrated approaches, the vision of a sustainable future is not just feasible but indeed attainable for Indian manufacturing SMEs. As we turn our gaze towards the future, the commitment to embracing sustainability will undoubtedly define the next chapter of industrial evolution. The journey may be challenging, but it is underpinned by an undeniable promise—one that holds the potential to reshape industries, enhance livelihoods, and ultimately, secure a healthier planet for generations to come.


Subject of Research: Net-zero emissions in Indian manufacturing SMEs

Article Title: Analysis of roadblocks and enablers of net-zero in Indian manufacturing SMEs

Article References:

Kumar, R., Phanden, R.K., Kumar, P. et al. Analysis of roadblocks and enablers of net-zero in Indian manufacturing SMEs.
Discov Sustain (2026). https://doi.org/10.1007/s43621-025-02487-w

Image Credits: AI Generated

DOI:

Keywords: Net-zero emissions, Indian manufacturing, SMEs, sustainability, roadblocks, enablers, collaboration, technology, education.

Tags: awareness and understanding of net-zero emissionsbarriers to sustainable practices in Indian manufacturingdrivers for achieving carbon neutrality in small businesseseconomic growth vs environmental sustainabilityfinancial challenges faced by Indian SMEsnet-zero emissions in SMEsregulatory compliance issues for small enterprisesrole of education in enhancing sustainability awarenesssocietal impacts on sustainable practices in Indiastrategies for promoting green practices in SMEstechnological advancements for sustainability in SMEstransition to sustainable methodologies in Indian manufacturing
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