India Expected to Experience 5-Fold Increase in Green Investments to Rs 31 Lakh Crore by 2030
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Synopsis
India is set to experience a five-fold increase in green investments, reaching Rs 31 lakh crore from 2025 to 2030, according to a Crisil report. The report highlights significant allocations for renewable energy and emphasizes the role of government incentives for high-risk projects.
Key Takeaways
- Projected green investments of Rs 31 lakh crore by 2030.
- Major investment in renewable energy and storage.
- Key commitments include a 45% reduction in carbon intensity.
- India's renewable energy capacity reached 209.44 GW in December 2024.
- Government incentives are vital for high-risk green projects.
New Delhi, Jan 15 (NationPress) A recent Crisil report indicates that India is set to experience a remarkable five-fold increase in green investments, reaching Rs 31 lakh crore from 2025 to 2030.
Of the projected Rs 31 lakh crore investments, Rs 19 lakh crore is anticipated to flow into renewable energy and storage initiatives, Rs 4.1 lakh crore into transportation and automotive sectors, and Rs 3.3 lakh crore into oil and gas, as outlined during Crisil's ‘India Infrastructure Conclave 2025’ held in the capital.
This investment surge is a vital component of an estimated $10 trillion required by 2070 to meet the nation’s net-zero targets, as stated in the Updated First Nationally Determined Contribution (NDC) under the Paris Agreement.
Key commitments in India’s NDC include a 45 percent reduction in the carbon intensity of its gross domestic product (GDP) by 2030 from 2005 levels, and a goal to increase the share of cumulative installed power capacity from non-fossil fuel sources to 50 percent.
“Being the fastest-growing large economy in the medium term, India has an opportunity to align its developmental goals with environmental responsibilities,” stated Amish Mehta, Managing Director and CEO of Crisil.
Based on government and corporate plans, along with on-ground progress, “we project Rs 31 lakh crore of green investments by 2030,” he noted.
As of December 2024, India's total renewable energy installed capacity saw a strong growth of 15.84 percent, reaching 209.44 GW, up from 180.80 GW in December 2023.
In 2024, a total capacity of 28.64 GW was added, marking a substantial year-on-year increase of 119.46 percent compared to the 13.05 GW added in 2023, according to the latest government data.
The report notes that established technologies with lower risk profiles, such as solar power, wind power, and two-wheeler EVs, have sufficient debt financing available through banks, sector-focused development finance institutions, and bond markets.
Conversely, for higher-risk projects like green hydrogen, CCUS (carbon capture, utilization, and storage), and energy storage, government grants and incentives will be crucial for enhancing project viability, the report highlights.
