Landscape of Green Finance in India

Tracked green finance in India averaged INR 309 thousand crores (~USD 44 billion) per annum in FY 2019-20, which is less than 25% of the annual amount required to meet the country's Nationally Determined Contributions (NDCs). While flows increased by 150% from FY2017/18 to FY2019/20, the report highlights a critical shortfall in adaptation funding and a heavy reliance on public sector finance for clean transportation. The study recommends the development of a green taxonomy, improved data disclosure, and the scaling of capital markets to mobilize the trillions of dollars needed for India's 2030 and 2070 Net-Zero goals.

• Tracked green finance in India for FY 2019-20 averaged INR 309 thousand crores (~USD 44 billion) per annum, which represents less than a fourth of the estimated annual need of INR 11 lakh crores (USD 170 billion) required to achieve India's Nationally Determined Contributions (NDCs) by 2030.
• Green finance flows grew by 150% between FY2017/18 and FY2019/20, with public sector flows increasing by 179% and private sector flows by 130%.
• Domestic sources provided the vast majority of green finance, accounting for 87% in FY2019 and 83% in FY2020. Within domestic sources, the private sector contributed approximately 59% (INR 156.9 thousand crores).
• International finance share rose from 13% in FY2019 to 17% in FY2020, with public flows (ODA and OOF) making up 60% of international finance over the two-year period. Green-related Foreign Direct Investment (FDI) reached nearly INR 9 thousand crores in FY2020, though it represents only about 3% of total FDI inflows to India.
• Mitigation funding was primarily split between clean energy (42%) and energy efficiency (38%), with clean transportation receiving 17%. Solar projects were the largest recipient within clean energy, receiving INR 54 thousand crores over 2019/2020 (41% of the sector's total).
• Clean transportation is overwhelmingly funded by the public sector (96%), with Mass Rapid Transit Systems (MRTS) accounting for over 87% of the sector's total fund flow. Electric vehicle (EV) investments are significantly lower, at INR 2 thousand crores per year, compared to an estimated annual need of INR 125 thousand crores.
• The energy efficiency sector saw a 26% increase in finance flows from FY2019 to FY2020, totaling INR 118 thousand crores per annum, with 91% coming from the private sector. However, funding for green buildings and process efficiency dropped by 81% and 83% respectively in FY2020.
• Adaptation finance is severely underfunded, totaling INR 37 thousand crores (USD 5 billion) per annum for FY2019/20, compared to a DEA estimate of INR 28.9 lakh crores (USD 400 billion) required by FY2020. This funding was 94% domestic and primarily from government budgets, with flood and cyclone mitigation receiving 66% of the flows.
• Debt was the most used financial instrument, averaging INR 152 thousand crores (USD 43 billion) per year, accounting for 49% of total tracked green finance.
• The report identifies critical policy gaps hindering green finance, specifically the absence of a national green taxonomy and an integrated domestic Measurement, Reporting and Verification (MRV) system.

APA

Khanna, N., Purkayastha, D., & Jain, S. (2022). Landscape of Green Finance in India. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/08/Landscape-of-Green-Finance-in-India-2022-Full-Report.pdf

Chicago

Khanna, Neha, Dhruba Purkayastha, and Shreyans Jain. Landscape of Green Finance in India. Climate Policy Initiative, 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/08/Landscape-of-Green-Finance-in-India-2022-Full-Report.pdf.

Wikipedia

{{cite report |last1=Khanna |first1=Neha |last2=Purkayastha |first2=Dhruba |last3=Jain |first3=Shreyans |title=Landscape of Green Finance in India |publisher=Climate Policy Initiative |date=August 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/08/Landscape-of-Green-Finance-in-India-2022-Full-Report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{khanna2022landscape, author = {Khanna, Neha and Purkayastha, Dhruba and Jain, Shreyans}, title = {{Landscape of Green Finance in India}}, institution = {Climate Policy Initiative}, year = {2022}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/08/Landscape-of-Green-Finance-in-India-2022-Full-Report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }