The Landscape of Green Finance in India tracks flows to real economy sectors—clean energy, clean transportation, and energy efficiency—as well as to some adaptation sectors. The study considers both public and private sources of capital—domestic as well as international—to track the flow of finance from the source to the end beneficiaries through different instruments.

India continues to expand its green finance flows. 

India’s tracked green finance reached an all-time high in 2021/22, but at least three times more investment is required to meet the country’s climate targets. 

Mitigation finance reached INR 3,712 billion (USD 50 billion) on average per year in FY 2021/22, a 20% increase on FY 2019/21, even amid economic disruptions caused

by COVID-19.

However, current green finance in India still only represents approximately 30% of the investment needed to meet the country’s Nationally Determined Contributions (NDCs) alone.

Green finance for tracked adaptation-related interventions has also increased by almost three times between 2019/20 and 2021/22.

This increase is partly due to the real growth of financial flows and partly due to the coverage of an additional sector in this report for FY 2021/22: on-farm adaptation-related activities in agriculture.

Despite this upward trend, tracked finance for adaptation-related activities falls short of India’s needs, estimated to be at least INR 5,733 billion (USD 67 billion) per year from 2015 to 2030. 

Sources and sectors of mitigation finance

Mitigation finance was primarily domestically sourced (83%) in 2021/22. International finance increased to 17% (INR 620 billion/USD 8.3 billion) of India’s total mitigation flows from around 15% in 2019/20. 

The private sector contributed 66% of domestic mitigation finance, as well as 66% of total international mitigation flows in 2021/22.

Of the 34% of domestic finance coming from public sources, government budgets—both central and state—accounted for INR 596 billion (USD 8 billion) in 2021/22, up from INR 574 billion in 2019/20.

Public sector undertakings contributed the remaining 43%.

The 34% of international mitigation funding came from public sources, including official development assistance and other official flows.

Finance to tracked mitigation sectors, went primarily to clean energy in 2021/22 (47%, up from 42% in 2019/20).

Finance for energy efficiency accounted for 35%.

Clean transportation received 18%.

Sources and sectors of adaptation finance

Tracked adaptation finance continued to be dominated by domestic sources, though international adaptation finance increased by 19% in 2021/22 on 2019/20. Adaptation finance flows increased partly due to tracking.

Domestic sources, mainly central and state government budgets, accounted for 98% of total adaptation finance in 2021/22.

Of the remaining 2% of public finance that came from international sources, multilateral DFIs provided 92%

Disaster risk management received 42% of tracked adaptation flows (INR 461 billion/USD 6 billion).

Flood and cyclone mitigation received 32%.

On-farm adaptation-related agricultural activities received 24%.

Concluding observations

India needs to urgently scale green finance to enable low-carbon and climate-resilient development. Based on this report’s findings, CPI proposes the following priorities: 

1. Coordinated action by all stakeholders to scale up green finance at a faster pace, by: 

• Enhancing government policies, regulations, and guidelines to signal government commitment to low-carbon and resilient development.  


• Creating market-based incentives, innovative financial products, and de-risking investments to accelerate green finance.  


• Augmenting development banks’ and FIs’ important roles in mobilizing green finance through interventions that direct capital to green initiatives.   

2. Enhancing adaptation finance, by:

• Fostering concerted efforts and collaboration across various ministries and departments to plan, invest, and execute adaptation projects to mainstream adaptation action across sectors. 


• Ensuring that state-level adaptation plans indicate estimated adaptation funding gaps, including sectoral gaps, to boost understanding of where finance needs to flow.  


• Boosting private investment in adaptation by using public finance.  

3. Furthering policy and regulatory measures to mobilize green finance across all sectors, by:

• Developing and operationalizing a green/climate finance taxonomy. 


• Introducing national and subnational level legislation and regulations for adaptation. 

4. Making coordinated efforts across data collection, reporting, and access, by: 

• Standardizing and mandating disclosures.  


• Increasing availability and accessibility of climate finance data.  


• Implementing a domestic measurement, reporting, and verification systems