This technical brief presents a strategic roadmap to support Jharkhand’s economic transition in line with India’s net-zero commitment. With fossil fuel demand expected to peak between 2030 and 2035, the state faces potential challenges to revenues and employment linked to its mining-dependent economy.

The report sets out a framework for Green Economic Diversification, identifying pathways to leverage Jharkhand’s existing industrial base while reducing long-term fiscal and workforce vulnerabilities. It focuses on four high-potential sectors: Clean Power, Green Molecules, Sustainable Mobility, and Green Equipment Manufacturing. Together, these sectors could generate an estimated USD 1.43 billion in annual state tax revenue, helping impact future in fossil fuel–related income.

Delivering this transition will require an estimated USD 41.4 billion in cumulative investment. The roadmap proposes a phased strategy, beginning with an Enabling Phase (2026–2035) that prioritises reinvestment of current fossil fuel revenues into infrastructure development, workforce reskilling, and a dedicated transition finance framework. Subsequent phases focus on scaling new industries and sustaining long-term economic resilience.

Investment Opportunity by Sector

The roadmap estimates a total cumulative investment requirement of USD 41.4 billion (INR 351,900 crore) to anchor new green industries in Jharkhand:

• Green Molecules Production – USD 21.8 billion (INR 185,300 crore)
  Investments in bioethanol, compressed biogas, and green hydrogen/ammonia production.
• Sustainable Mobility and Components – USD 14.3 billion (INR 121,550 crore)
  Manufacturing of electric vehicles (two-wheelers, cars, and commercial vehicles) and hydrogen-based internal combustion engine heavy commercial vehicles.
• Green Equipment Manufacturing – USD 5.3 billion (INR 45,050 crore)
  Integrated manufacturing hubs for solar PV cells and modules, and lithium-ion battery cells and packs.

Key Takeaways

• Revenue substitution: Emerging green sectors could generate approximately USD 1.43 billion in annual state tax revenue, helping replace declining mining-related revenues.
• Employment potential: Green manufacturing and MSME growth could create a net-positive employment outcome, exceeding job losses in the fossil fuel sector.
• Capital mobilisation: Achieving this transition requires USD 41.4 billion in cumulative investment across power, mobility, and manufacturing.
• Phased implementation: The roadmap follows a three-stage pathway—Enabling (2026–2035), Scaling Up (2036–2047), and Viksit Bharat (2048–2070)—to support a just, resilient, and future-ready economy for Jharkhand.

Download the report here