Mapping India's Energy Policy 2025

The report finds that while India has achieved a non-fossil electricity capacity share exceeding 50% in 2025, public finances remain heavily tied to fossil fuels. In FY 2024, fossil fuel revenues contributed nearly INR 9 lakh crore (USD 108 billion) to the exchequer, and 83% of central state-owned enterprise capital expenditures were directed toward fossils. Although clean energy subsidies grew by 31% year-on-year in FY 2024 and fossil fuel subsidies declined by 12%, the latter was attributed to cyclical price movements rather than structural policy. The study recommends improving the targeting of electricity subsidies, redirecting state-owned enterprise capital toward clean-tech, and diversifying government revenue through carbon pricing and green taxes.

• India's non-fossil electricity capacity share exceeded 50% in 2025, meaning the country met one of its nationally determined contributions targets five years early. This was supported by clean energy subsidies that contributed to a fivefold growth in renewable capacity since 2014.
• In fiscal year 2023–2024 (FY 2024), government support for fossil fuels was five times the size of clean energy support, the lowest ratio in five years. Clean energy subsidies increased by 31% year-on-year, while fossil fuel subsidies fell by 12%, though this decrease was due to cyclical price movements rather than structural policy changes.
• Public finances remain heavily dependent on fossil fuels, which contributed nearly INR 9 lakh crore (USD 108 billion), or 16% of all combined center and state government revenue, in FY 2024. Approximately 79% of this fossil revenue came from consumption taxes.
• State-owned enterprises (SOEs) continue to prioritize fossil fuel assets; nearly 83% of capital expenditures from central SOEs were allocated to fossils in FY 2024, primarily in oil and gas.
• Electricity subsidies constitute the majority (59%) of energy subsidies, which limits the fiscal capacity of state governments to expand clean energy programs.

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} }