Mapping India’s Energy Subsidies 2020

The report finds that while India has shifted significant public resources toward clean energy since FY 2014, fossil fuel subsidies in FY 2019 remained over seven times larger than those for alternative energy. Key trends include a 65% increase in oil and gas subsidies between FY 2017 and FY 2019, a 35% decrease in renewable energy subsidies due to falling costs and policy constraints, and a rapid increase in electric vehicle support. The authors recommend further swapping fossil fuel resources for clean energy, targeting consumption subsidies for energy access, and addressing the full net costs of coal.

• Between financial year (FY) 2017 and FY 2019, oil and gas subsidies increased by more than 65%, rising from INR 40,762 crore (USD 6.1 billion) to INR 67,679 crore (USD 10.07 billion), primarily due to higher oil prices and increased use of subsidized liquefied petroleum gas (LPG).
• Renewable energy (RE) subsidies decreased by 35%, falling from a peak of INR 15,313 crore (USD 2.3 billion) to INR 9,930 crore (USD 1.5 billion) in FY 2019, influenced by lower RE costs and policy decisions such as price caps in auctions and the solar safeguard duty.
• Subsidies for electric vehicles (EVs) have grown over 11 times since FY 2017 and over 440 times since FY 2014, reflecting a recent increase in government support levels.
• Despite a general shift toward clean energy since FY 2014, fossil fuel subsidies remain dominant; in FY 2019, subsidies for coal, oil, and gas totaled INR 83,134 crore (USD 12.4 billion), which is over seven times the INR 11,604 crore (USD 1.7 billion) provided for electric mobility and renewables.
• State-level under-priced electricity is identified as the most expensive individual subsidy policy in India, estimated at INR 63,778 crore (USD 9.5 billion), with evidence indicating it is not well-targeted.
• Coal subsidies were estimated at INR 15,456 crore (USD 2.3 billion) in FY 2019, and the report notes that the net costs of coal—including air pollution and greenhouse gas emissions—far exceed the revenues generated from coal taxes and charges.

APA

Garg, V., Viswanathan, B., Narayanaswamy, D., Beaton, C., Ganesan, K., & Sharma, S. (2020). Mapping India’s Energy Subsidies 2020. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf

Chicago

Garg, Vibhuti, Balasubramanian Viswanathan, Danwant Narayanaswamy, Christopher Beaton, Karthik Ganesan, and Shruti Sharma. Mapping India’s Energy Subsidies 2020. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf.

Wikipedia

{{cite report |last1=Garg |first1=Vibhuti |last2=Viswanathan |first2=Balasubramanian |last3=Narayanaswamy |first3=Danwant |last4=Beaton |first4=Christopher |last5=Ganesan |first5=Karthik |last6=Sharma |first6=Shruti |title=Mapping India’s Energy Subsidies 2020 |publisher=International Institute for Sustainable Development |date=2020 |url=https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{garg2020mapping, author = {Garg, Vibhuti and Viswanathan, Balasubramanian and Narayanaswamy, Danwant and Beaton, Christopher and Ganesan, Karthik and Sharma, Shruti}, title = {{Mapping India’s Energy Subsidies 2020}}, institution = {International Institute for Sustainable Development}, year = {2020}, url = {https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }