Financing India’s Power, Transport, and Industry Transitions: Gaps, Instruments, and the Way Forward

India's transition to net zero by 2070 is estimated to require around US$515 billion annually, but current climate finance flows cover only about 10% of this requirement. Funding is concentrated in commercially established areas such as utility-scale solar, while critical subsectors including distributed renewable energy, battery energy storage, electric vehicle charging infrastructure, electric fleets and industrial decarbonisation remain underfunded. This working paper maps climate-finance flows and existing instruments across the power, transport and industry sectors, identifies underused and missing mechanisms, and draws on G20 country case studies to explore how they could be adapted to India. It highlights the potential of credit guarantees, blended finance, green and transition bonds, viability gap funding and project aggregation to reduce investment risks and attract private capital. The authors recommend a coordinated national climate-finance strategy, supported by standardised frameworks, enabling regulations and stronger institutional capacity.