The study highlights the importance of strengthening institutions for environment management in sustaining and accelerating India's strong growth performance. Specifically, it analyzes and identifies opportunities in institutional development and capacity building measures to strengthen monitoring and enforcement of environmental compliance and enhances environmental performance in the three major sectors: power, industry and highways. It proposes a program of specific actions to significantly increase the capacity of environmental institutions, sectoral agencies and communities to match the growing demands of economic growth and public awareness.