Mapping India's Energy Policy 2025

This report by the International Institute for Sustainable Development analyzes India's energy transition through the lens of public finance, focusing on government support, revenues, and the role of state-owned enterprises (SOEs) for fiscal year 2023–2024 (FY 2024).

• Electricity subsidies constitute the majority (59%) of energy subsidies, which limits the fiscal capacity of state governments to expand clean energy initiatives.
• There is a divergence in how energy support is delivered: clean energy is funded via direct budgetary transfers, whereas fossil fuel support is primarily driven by state-owned enterprises (SOEs), with nearly 83% of central SOE capital expenditures allocated to fossils in FY 2024.
• Public finances remain heavily reliant on fossil fuels, which generated nearly INR 9 lakh crore (USD 108 billion) for the exchequer in FY 2024, representing 16% of total combined center and state government revenue.
• Consumption taxes accounted for nearly 79% of India's fossil revenue in FY 2024. Specifically, excise and value-added tax on petrol and diesel, along with the now-abolished Goods and Services Tax compensation cess on coal, provided nearly 50% of these revenues.
• Government support for fossil fuels in FY 2024 was five times the size of clean energy support, the lowest ratio in five years. While clean energy subsidies grew by 31% year-on-year, a 12% decline in fossil fuel subsidies was attributed to cyclical price movements rather than structural policy changes.
• Clean energy subsidies over the last decade have helped increase renewable capacity fivefold since 2014, leading to a non-fossil electricity capacity share exceeding 50% in 2025 and allowing India to meet one of its nationally determined contributions targets five years early.

APA

Dixit,, S. R. J. P. C. S. S. S. S. M. (2025). Mapping India's Energy Policy 2025. International Institute for Sustainable Development. https://www.iisd.org/publications/report/mapping-india-energy-policy-2025

Chicago

Dixit,, Swasti Raizada,Saumya Jain,Godwin Paul Chandra Sekar,Deepak Sharma,Shruti Sharma,Sonakshi Saluja,Gayatri Milind. Mapping India's Energy Policy 2025. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/mapping-india-energy-policy-2025.

Wikipedia

{{cite report |last1=Dixit, |first1=Swasti Raizada,Saumya Jain,Godwin Paul Chandra Sekar,Deepak Sharma,Shruti Sharma,Sonakshi Saluja,Gayatri Milind |title=Mapping India's Energy Policy 2025 |publisher=International Institute for Sustainable Development |date=16 December 2025 |url=https://www.iisd.org/publications/report/mapping-india-energy-policy-2025 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dixit2025mapping, author = {Dixit,, Swasti Raizada,Saumya Jain,Godwin Paul Chandra Sekar,Deepak Sharma,Shruti Sharma,Sonakshi Saluja,Gayatri Milind}, title = {{Mapping India's Energy Policy 2025}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/publications/report/mapping-india-energy-policy-2025}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }