India is the third largest producer and consumer of electricity globally, with an installed capacity approaching 540 GW (April, 2026). More than 50% of its cumulative installed capacity is from non-fossil fuel sources, including hydro. Emergence of a digital grid, with smart meters, AI-driven grid monitoring & forecasting, and energy & resource management systems, will be central to India’s future power system.
India’s industrial sector is one of the largest contributors to economic growth, accounting for ~30% of GDP. It also contributes 30-35% of India’s GHG emissions. Heavy industries such as steel, cement, chemicals, refineries, and fertilizers continue to rely heavily on coal and fossil fuel based thermal processes. However, the sector is entering a transition phase driven mainly by export competitiveness pressures, carbon-conscious global supply chains, and increasing renewable energy penetration.
India is the third-largest automotive producer globally, with a $240 billion industry supporting 30 million jobs. Car ownership is expected to triple and air travel to double by 2050. Although 2W and 3W electrification is commercially self-sustaining, significant opportunities remain in 4W EV financing, corridor charging infrastructure, alternative fuels for aviation and long-haul freight, and the battery supply chain.
Food & Agriculture sits at a very vulnerable intersection of climate change where it is both the emitter of greenhouse gases and is severely threatened by the effects of these very emissions. India, with a population of 1.4 billion people to be fed, nearly ~40% the workforce being agrarian - the risk is existential. The sector contributes to around 12-14% of the national emissions, ~18% of India’s GDP and about 60-80% of it’s farmland faces one or more climate risks.
The primary drivers of emissions in the construction industry are rapid urbanisation and population growth. The sector contributes to 33% of total GHG emissions, spanning everything from cement kilns to cooling appliances, making it one of the largest and most complex emission sources in the country. It is expected that 50% of India's urban infrastructure is yet to be built by 2050, and over a billion people face extreme heat stress. The decisions made today will shape emissions for decades to come.
Water is both a culprit and victim of climate change, as it contributes to GHG emissions in the form of CH4 and N2O, as well as is susceptive to climate change. For India, water scarcity is rising rapidly with over 600 million people in India facing high-to-extreme water stress, and the groundwater table has been declining rapidly due to over extraction. Water also presents a massive economic opportunity, with global economic use value was estimated at 58 Trillion USD.
In 2024, the world breached the 1.5°C global warming threshold for the first time, making climate adaptation a non-negotiable and urgent necessity. There is a growing consensus that adaptation investments must run complementary to mitigation actions. Latest assessments estimate that the cost of asset damage and business interruption across the global listed equity universe could grow to USD 4.6 trillion annually by 2050, under a 3°C warming scenario. Globally, investment opportunity, across public, private debt and equity, is expected to increase from US$2tn today to US$9tn by 2050. As the world’s 9th most climate-vulnerable country, adaptation is an economic imperative for India.
