India will see a five-fold growth in green investments to Rs 31 lakh crore between 2025 and 2030, imperative to drive include accelerating grants and incentives and scaling up blended finance initiatives with multilaterals, policy support, carbon market development and industrial decarbonisation, says Crisil.
Of the Rs 31 lakh crore investments foreseen, Rs 19 lakh crore is seen going into renewable energy and storage, Rs 4.1 lakh crore into transport and automotive sectors, and Rs 3.3 lakh crore into oil & gas.
Amish Mehta, Managing Director & CEO, Crisil Limited said, “As the fastest-growing large economy over the medium term, India has a window of opportunity to balance its developmental and environmental aspirations and priorities. Our energy needs will only accelerate from here, so a balanced transition to net-zero is crucial.”
The India Infrastructure Conclave 2025 in Delhi also saw release of the Crisil Infrastructure Yearbook 2025. It includes a unique national index, the Crisil InfraInvex, which has been measuring the investability or ‘investment attractiveness’ of select infrastructure sectors since 2017.
The latest scores indicate the momentum is stable or improving in most of the 12 infrastructure segments tracked on dimensions such as policy, regulation, financials, operations and sustainability. Four power-linked sectors—renewables, conventional generation, transmission, and distribution—have done well due to improving policy framework and investment opportunities.
Mining and the EV ecosystem saw some loss of investment attractiveness. The mining sector can benefit from sharper focus on critical minerals, while the EV ecosystem awaits the next round of policy interventions.
For established technologies with relatively lower risk profile, such as solar power, wind power and two-wheeler EVs, there is adequate debt finance available through banks, sector-focussed development finance institutions and bond markets.
The development of the green bond markets is likely to provide significant opportunity, too. Besides, robust capital markets, monetisation of operational assets through secondary sale and infrastructure investment trusts can ensure adequate equity funding.
However, for relatively high-risk projects such as green hydrogen, CCUS (carbon capture, utilisation and storage), energy storage and other emerging technologies, government grants and incentives will hold the key in improving project viability.
Rahul Prithiani, Senior Director & Global Head, Energy and Sustainability, Crisil Intelligence, said, “Innovative financing can help ensure consistent investments. Given the reliance on climate funds, multilateral funding agencies and in the backdrop of integration of climate risk in the lending process by banks driven by the Reserve Bank of India, it is important that corporates enhance disclosure of ESG and sustainability-linked metrics.”