Greening Indian Businesses for the World Market

Abstract

There has been a steady increase in environmental notifications under the provisions in the WTO Agreements as indicated by the recent WTO environmental database. This trend threatens to reduce market access and competitiveness of traditional exports from developing countries like India. The Indian businesses need to aggressively address the green challenge in the world market, and credibly signal the eco-sensitivity of their products in the market by increasing environmental certification. Other developing countries like China have been quick with proactive strategies on environmental certification to tap global opportunities in the sectors like organic food/beverage and eco-textiles. The rates of growth in ISO 14001 and IFOAM certified firms/farms in China have been phenomenal, and tin total number of such eco-certified Chinese firms/farms outstripped those in India in the last six years. Drawing from the literature on competitiveness and environmental regulations, and anecdotal evidence of actual firm experience, this paper puts forward the case that it is both essential and profitable for Indian businesses to increase environmental certifications to take advantage of the full potential of the opportunities in the world market.