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Informist, Monday, Feb. 9, 2026

 

MUMBAI – India requires $22.7 trillion worth of investments to achieve its goal of net-zero carbon emissions by 2070, according to a report by NITI Aayog. This underscores the need for urgent, massive, and long-term capital mobilisation, the report said.

 

The country has lowered emissions and achieved 50% non-fossil power capacity five years ahead of the Nationally Determined Contribution target of 2030. "However, meeting long-term goals will require unprecedented capital mobilisation of trillions required by 2070, compared to current annual flows of just USD 135 billion (of which USD 80-90 billion supports clean energy)," the report said.

 

"High capital costs, limited concessional finance, and structural constraints continue to deter investment in emerging and hard-to-abate sectors." The power sector accounts for nearly half of total investment needs to meet the 2070 net-zero emission goal.

 

The transport sector represents roughly one-fifth of total investments, focussed on electric vehicles, charging networks, and hydrogen. Industry accounts for about 25% of the total investment needs, reflecting capital-intensive decarbonisation in steel, cement, and chemicals post 2045, the report said.

 

India's economy, the world's fourth-largest with a GDP of over $4.18 trillion, faces direct risks from climate change, the report said. Climate change threatens agricultural productivity, physical infrastructure, and public health systems.

 

"India's dependence on imported fossil fuels further aggravates these risks and heightens macroeconomic uncertainty," the report said. "These challenges are compounded by a constrained global carbon budget and evolving trade dynamics including the growing use of carbon-related trade measures which intensify the headwinds facing developing economies."

 

To navigate this complex landscape, India needs to align its aspiration of becoming a developed economy by 2047 with a sustained pathway towards achieving net-zero emissions by 2070.

 

India's GDP is projected to stay broadly resilient even if the country meets its net-zero emission target scenario and is expected to reach $30 trillion by 2047.

 

In a scenario where India achieves net zero emissions, the economy's growth structure will shift to investment-driven from consumption-driven, the report said. Financing the investment from domestic sources would tighten liquidity and crowd out consumption, the report added.  End

 

US$1 = INR 90.76

 

Reported by Shubham Rana

Edited by Ashish Shirke

 

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