india-energy-transition-2020-summary-98a7f22df4097cdf.pdf

This executive summary from the International Institute for Sustainable Development (IISD) analyzes the evolution of energy subsidies in India from financial year (FY) 2014 to FY 2019. It evaluates the shift of public resources between fossil fuels, renewable energy, and electric vehicles, while providing recommendations to align public funding with a clean energy transition, particularly in the context of the COVID-19 crisis.

• Between FY 2017 and FY 2019, oil and gas subsidies increased by over 65%, rising from INR 40,762 crore (USD 6.1 billion) to INR 67,679 crore (USD 10.07 billion). This growth was primarily caused by increasing oil prices and the expanded 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. This decline is attributed to lower RE costs and policy-driven slowdowns, including price caps in auctions and the solar safeguard duty, though subsidies were expected to rise again in FY 2020 due to new policies.
• Support for electric vehicles (EVs) has seen rapid growth, increasing over 11 times since FY 2017 and over 440 times since FY 2014. This reflects a recent increase in support levels by the Government of India to meet capacity targets.
• Despite a general shift toward clean energy since FY 2014, fossil fuel subsidies remain significantly higher than those for alternative energy. 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) allocated to electric mobility and renewables.
• Consumption subsidies are increasing, with under-priced electricity at the state level being the most expensive individual subsidy policy in India, estimated at INR 63,778 crore (USD 9.5 billion), and evidence indicates it is not well-targeted.
• Coal subsidies were estimated at INR 15,456 crore (USD 2.3 billion) in FY 2019. The report notes that the net costs of coal—including greenhouse gas emissions and air pollution—far exceed the revenues generated from coal taxes and charges.

APA

International Institute for Sustainable Development (n.d.). india-energy-transition-2020-summary-98a7f22df4097cdf.pdf. https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf

Chicago

International Institute for Sustainable Development. india-energy-transition-2020-summary-98a7f22df4097cdf.pdf. n.d. https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=india-energy-transition-2020-summary-98a7f22df4097cdf.pdf |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{internationalinstituteforsustainabledevelopmentndindiaenergytransition2020summary98a7f22df4097cdfpdf, author = {{International Institute for Sustainable Development}}, title = {{india-energy-transition-2020-summary-98a7f22df4097cdf.pdf}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/india-energy-transition-2020-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }