India as the host of G20 Presidency in 2023 aims to lead the cause of Sustainable Finance. The country faces the challenge of balancing its development needs with the need to move towards sustainable finance and showcase its strength on the world stage. For sustainable development, India needs to focus on inclusive collaboration, innovation, and better project management.

To overcome the constraints of public infrastructure project management, India needs more predictable policies, better project management, and a reduction in delays and the cost of funds for taxpayers. The country can showcase its strengths in MSME, digitalization, and IT-enabled platforms to lead the sustainability transition in developing nations.

India has already made strides in MSME through technology-led enablement, such as the TReDS receivable platform, which can be leveraged for exports and demonstrated to developing nations. To raise cheaper climate finance, the government can evaluate investment options and increase taxes on high dividend income to invest in climate bonds. The government can also give tax exemptions for electric vehicles and improve global financial services regulation. By improving internal benchmarks, capacities and contributing to the global value chain, India can contribute to sustainable development.

India's Hemp Industry

India is supporting the hemp clothing industry by promoting it as a sustainable alternative to traditional cotton production. The government is also creating favorable regulations for the growth of the hemp industry, including recent moves to classify hemp seeds, oil, and flour as food products. Additionally, initiatives to increase education and awareness of the benefits of hemp-based products are also underway.

India's hemp industry is poised for product innovation, from protein bars to flavored powders and snacks, following recent regulatory changes that classify hemp seed, oil, and flour as food for the first time. Previously, hemp-based food products in India were regulated under the Ministry of Ayurveda, Yoga, Naturopathy, Unani, Siddha, Sowa-Rigpa and Homoeopathy, as the local food authority, Food Safety and Standards Authority of India (FSSAI), did not have standards for hemp. However, last year, FSSAI issued a gazette notification to regulate hemp seeds and products under the Food Safety and Standards (Food Products Standards and Food Additives) Fifth Amendment Regulations, 2021. 

Hemp seeds, hemp seed oil and hemp seed flour shall be sold as food or used as an ingredient in a food for sale subject to conforming to [FSSAI-defined] standards, [including adhering to specified] THC and cannabidiol (CBD) limits.

The new regulation requires hemp products to conform to FSSAI standards, including THC and CBD limits, and not to suggest a psychoactive effect or make CBD-related claims or depict images of the Cannabis plant other than the seed. The word "hemp" can be used on labels but not "cannabis," "marijuana," or similar words. The hemp industry welcomed the news as a significant step in recognizing the nutritional benefits of hemp seeds and boosting the industry's growth and exports.

Unparalleled Growth

Hemp made clothing and accessories are considered sustainable because hemp is a highly durable and renewable crop that requires less water and pesticides compared to other textile crops. Hemp fibers are also naturally resistant to mold and UV light, making hemp clothing durable and long-lasting. Additionally, the production of hemp-based textiles generates less pollution and waste compared to traditional cotton or synthetic textiles. The use of hemp in clothing and accessories helps to reduce the strain on natural resources and supports the growth of sustainable industries.

The growth of hemp products in India is seeing an increase with the recent regulatory advances that classify hemp seed, oil and flour products as food for the first time. This has led to predictions of a wave of product innovation in the hemp industry, from protein bars to flavored powders and snacks. With this recognition, the Indian hemp industry is expected to flourish, not only domestically but also in exports to other countries.