India is poised for a remarkable transformation in green investments, with projections indicating a five-fold increase to approximately ₹31 lakh crore between 2025 and 2030. This surge in green funding is critical to meeting the country’s net-zero emissions goals as outlined in its Updated Nationally Determined Contributions (NDC) under the Paris Agreement. Crisil unveiled these insights at the India Infrastructure Conclave 2025, a key annual event held in New Delhi, where stakeholders from across the infrastructure and energy sectors gathered to discuss India’s decarbonisation journey.

The $10 trillion investment needed by 2070 to achieve net-zero targets represents a monumental challenge. As part of India’s NDC commitments, the country aims to reduce the carbon intensity of its GDP by 45% by 2030 compared to 2005 levels. Additionally, India plans to increase the share of its cumulative installed power capacity from non-fossil fuel-based energy sources to 50% by the same year.

Amish Mehta, Managing Director and CEO of Crisil, emphasised that India, as the fastest-growing major economy, is in a unique position to balance its growth aspirations with environmental priorities. “Our energy needs will only accelerate from here, so a balanced transition to net-zero is crucial,” he remarked. Mehta highlighted that, based on government plans and corporate commitments, India is set to witness investments amounting to ₹31 lakh crore in green initiatives by 2030. However, he also stressed that accelerating grants and incentives, scaling up blended finance, and robust policy support will be critical for driving key initiatives such as carbon market development and industrial decarbonisation.

The projected ₹31 lakh crore in investments will be directed across several key sectors. A substantial portion, nearly ₹19 lakh crore, is expected to flow into renewable energy and storage. Around ₹4.1 lakh crore will be invested in transport and automotive sectors, while approximately ₹3.3 lakh crore will go into the oil and gas industries. These investments are seen as vital for pushing forward the country’s green agenda.

The Crisil Infrastructure Conclave serves as a vital platform for discussing such challenges and generating ideas for India’s infrastructure development. This year’s theme, “Navigating India’s Decarbonisation Journey,” focused on three core dimensions: sectoral decarbonisation pathways, greening infrastructure and urban mobility, and financing decarbonisation efforts. The event also saw the release of the Crisil Infrastructure Yearbook 2025, presented by Pralhad Joshi, Union Minister for New and Renewable Energy, to an audience of policymakers, industry leaders, and financiers.

One of the highlights of the yearbook was the unveiling of the Crisil InfraInvex, a unique national index that has been tracking the investability of infrastructure sectors since 2017. According to the latest results, the momentum for most of the 12 infrastructure segments tracked is either stable or improving, particularly in power-related sectors such as renewables, conventional generation, transmission, and distribution. The improving policy framework and attractive investment opportunities in these areas have contributed to their positive outlook.

However, some sectors faced challenges. The mining industry saw a decline in investment attractiveness, which could be remedied with more focused efforts on critical minerals. Similarly, the electric vehicle (EV) ecosystem is awaiting further policy interventions to boost its growth potential.

Despite the positive outlook for many sectors, financing the required investments remains a significant hurdle. For established technologies like solar power, wind energy, and two-wheeler EVs, debt financing from banks, sector-focused development finance institutions, and the bond market is relatively accessible. The development of green bond markets is also expected to offer significant opportunities. Additionally, capital markets, secondary asset sales, and infrastructure investment trusts could play a pivotal role in securing equity funding for these sectors.

On the other hand, financing for higher-risk projects such as green hydrogen, carbon capture, utilisation, and storage (CCUS), and emerging energy storage technologies will depend more heavily on government grants and incentives. Here, private-sector involvement, along with specialised climate and venture funds, will be crucial. Multilateral financing bodies will play an important role, and innovative structures such as blended finance and first-loss guarantees will be necessary to scale these technologies in their early stages.

Rahul Prithiani, Senior Director and Global Head of Energy and Sustainability at Crisil, emphasised the need for a balanced approach to economic growth, energy security, and environmental sustainability. “Innovative financing can help ensure consistent investments, but challenges such as financing gaps and technological barriers must be addressed,” he said. He also pointed to the importance of corporates enhancing their disclosure of ESG (Environmental, Social, and Governance) and sustainability-linked metrics, especially with the Reserve Bank of India’s increasing focus on climate risk in the lending process.

The success of India’s decarbonisation journey will require a collaborative approach, involving government, the private sector, financial institutions, industry associations, and development agencies. International cooperation, such as technology transfer, concessional financing, and expertise exchange through platforms like the International Solar Alliance, could further accelerate the country’s green transition.

As India continues to chart its path toward a greener future, the investments and strategies discussed at the Conclave mark an important step in realising the country’s ambitious climate goals while maintaining its rapid economic growth.