India is getting better at financing proven green technologies but is trailing on

India’s green investment story is a success by several measures. Renewable capacity is expanding rapidly and the country is building domestic manufacturing capabilities in batteries and other clean-energy technologies.

India is getting better at financing the deployment of proven green technologies. It is much less adept at financing the technologies it will need for the next stage of its transition to a low-carbon economy.

What Happened

A solar park can obtain credit because lenders understand the technology, output and revenue model. A new battery chemistry, long-duration storage system or low-carbon industrial process faces a much harder journey.

• In 2024, 83% of all investment in its power sector went into clean energy, according to the International Energy Agency.

• The government’s ₹1 trillion Research, Development and Innovation Fund is designed to support private sector investment in research-led technologies and includes energy transition and climate action among its priority areas.

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Key Details

It may need years of research, pilots, certification and demonstration before it can generate dependable revenue. That makes it too risky for a bank, while the capital required to build physical assets can make it unattractive to conventional venture capital.

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Why It Matters

This is India’s climate-tech bankability gap. It is not the same as the broader problem of financing innovative startups.

• Twitter: @scurve Instagram: @soumya.scurve.

• The author is an independent expert based in New Delhi, Kolkata and Odisha.

What Reports Say

Coverage of the story so far points to:

• Continued reporting by Livemint as more details emerge