Report

Green Public Procurement in India

Progress, challenges, and opportunities

This report analyzes the state of green public procurement (GPP) in India, examining progress in the field, persisting challenges, and opportunities for more sustainable government procurement. It analyzes India's legal framework for GPP, highlights case studies and practical tools, and recommends four tangible steps for advancing GPP in the country.

By Sharmila Erizaputri, Ronja Bechauf on December 19, 2024

Key Messages

  • Why green procurement? For India, it can mean leveraging 30% of its GDP for sustainable consumption and production, reducing pollution, and meeting global goals like the Paris Agreement.

  • India's journey toward sustainability can benefit from boosting green procurement. With improved policies, skills, tools, and monitoring, GPP can reduce environmental impacts and shape sustainable markets.

India faces the challenge of balancing economic development with environmental sustainability. GPP can be a powerful tool to help address this challenge by leveraging India’s public spending, which accounts for nearly 30% of its GDP. Through green procurement, governments can reduce the environmental impacts of their purchases, while also supporting the market to shift to more sustainable practices.

This report examines the state of GPP in India, where public and private stakeholders have started various initiatives for more sustainable purchasing. Yet, widespread green procurement is still hindered by incomplete policy frameworks, low awareness and skills for GPP, a perception of higher costs for green products, the limited market availability of sustainable alternatives, weak monitoring mechanisms, and fiscal constraints.

Policy-makers, procurers, and civil society organizations in India can address these challenges and advance GPP by implementing four recommendations:

  • strengthen the policy framework, creating a solid legal basis and showing clear commitment to GPP,
  • build awareness and skills for GPP, including on the strategic importance of green procurement and by setting up a competence centre with dedicated trainings,
  • provide easy-to-use GPP tools, such as verified eco-labels and management systems and ready-made environmental criteria, and
  • establish a comprehensive GPP monitoring system, building on a baseline assessment, clear goals, and multi-stakeholder collaboration.

Through these strategic steps, India can leverage its public spending for more sustainable consumption and production, contributing to greener business practices and international commitments under the Paris Agreement and the Sustainable Development Goals.

Report details