Challenges and Barriers to a Fair and Equitable Transition in India's SME Sector: A Preliminary Analysis
This paper examines the energy transition’s impact on SMEs and their workforce qualitatively and quantitatively, emphasising skilling and inclusivity
This paper analyses the implications of the clean energy transition for small and medium enterprises (SMEs) and their workforce, with a particular focus on skilling and inclusivity. Using a mixed-methods approach, it draws on empirical evidence from selected industrial clusters across Gujarat, Tamil Nadu, Rajasthan, and Haryana, covering sectors such as chemicals, textiles, automobiles, home décor, plywood, food processing, and garments. The findings indicate that SME owners generally recognise the benefits of the clean energy transition, especially in terms of reduced pollution and carbon dioxide emissions, alongside the potential for wage increases for skilled workers. While nearly one third of workers anticipate benefits from clean energy skilling, owners remain sceptical about the transition’s ability to enhance inclusion of women, persons with disabilities, and transgender individuals, unless broader structural barriers are addressed. The paper advocates for customised skilling initiatives, the removal of structural and cultural barriers, and more sector-specific studies to minimise the impact of energy transition on workforce.