India will see a five-fold growth in green investments: Crisil

India will see a five-fold growth in green investments to Rs 31 trillion between 2025 and 2030, Crisil said during its India Infrastructure Conclave 2025. This is a crucial part of the estimated $10 trillion in investments needed through 2070 to achieve the country’s net-zero goals, as per the Updated First Nationally Determined Contribution (NDC) under the Paris Agreement.

Among India’s key NDC commitments are a 45% reduction in the carbon intensity of its gross domestic product (GDP) by 2030 from 2005 levels and an increase in the share of cumulative installed power capacity from non-fossil-fuel-based energy resources to 50%.

The yearbook 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 frameworks and investment opportunities. Mining and EV ecosystems saw some loss of investment attractiveness, as per the index. The mining sector can benefit from sharper focus on critical minerals, while the EV ecosystem awaits the next round of policy interventions, Crisil said in a statement.

For established technologies with relatively lower risk profiles, such as solar power, wind power, and two-wheeler EVs, adequate debt finance is available through banks, sector-focused development finance institutions, and bond markets. The development of the green bond markets is likely to provide significant opportunity, too. Besides robust capital markets, the monetization of operational assets through secondary sales and infrastructure investment trusts can ensure adequate equity funding.

However, for relatively high-risk projects such as green hydrogen, CCUS (carbon capture, utilization and storage), energy storage and other emerging technologies, government grants and incentives will hold the key to improving project viability, the report said.