IIT Madras researchers propose solutions for pollution problems of manufacturing firms

NEW DELHI: Indian Institute of Technology (IIT) Madras researchers have proposed solutions to the issues related to productivity and pollution of manufacturing firms in India. In collaboration with international researchers, the IIT Madras researchers studied the manufacturing sector in India and put forward a green domestic policy including foreign direct investment (FDI) and trade to improve the productivity and energy efficiency of the Indian manufacturing sector.

According to a statement from IIT Madras, the researchers used the ‘Prowess IQ’ database of the Centre for Monitoring the Indian Economy from 2001 to 2015 in studying the Indian manufacturing sector. To promote renewable energy, the researchers suggested correspondence and linkages between tax and energy intensity, tax credit or exemption for firms improving energy efficiency, and the adoption of new technology.

IIT Madras researchers suggested focusing on pollution-intensive industries and firms as they prefer countries with minimum environmental regulations. The research suggested supporting such firms in improving their energy efficiency and helping to reduce their pollution.

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" The researchers further conclude that the positive spillovers from export participation and foreign direct investments could help the Indian economy and increase energy efficiency in the manufacturing sector. A sustainable energy policy targeting the manufacturing industry is essential for the Indian economy to contribute to green and sustainable development," said the statement.

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Santosh Kumar Sahu, assistant professor of economics at the department of humanities and social sciences in IIT Madras led the research. He was assisted by Prantik Bagchi, a research scholar from the same department. Ajay Kumar, professor at the EMLYON Business School, Ecully, France, and Kim Hua Tan, professor at the Nottingham University Business School, UK were the international research partners. The research paper was published in the journal Annals of Operations Research.