Bridging the Gap: How India Can Finance and Reform Its Stalled Clean Industry Pipeline

Updated: November 04, 2025 11:37

India’s $89 billion clean industry pipeline faces significant financing and regulatory delays, with only one project achieving final investment in six months. Unlocking funds, streamlining approvals, and upgrading infrastructure are crucial for accelerating India’s clean energy transition and meeting global climate targets.

India’s ambitious clean-industrial projects pipeline, valued at $89 billion, is struggling to attract adequate financing and move beyond regulatory hurdles, delaying the country’s clean energy transition efforts. A recent report by the Mission Possible Partnership and the Industrial Transition Accelerator reveals that only one clean industry project has reached final investment decisions over the past six months, underscoring persistent challenges.

Financing Bottlenecks

Despite India’s large portfolio of 41 clean industry initiatives spanning green ammonia, hydrogen generation, and sustainable aviation fuels, the sector faces critical funding shortages. Only $13 billion of committed funding is secured, far below needs, compared to $80 billion in China and $54 billion in the US.

High capital costs and the underdeveloped market for competitively priced clean commodities discourage investment, particularly in emerging economies like India.

Regulatory and Infrastructure Delays

Sluggish regulatory approvals, fragmented policies, and infrastructure gaps further delay project commissioning. Extended timelines for permits and legal uncertainties stifle investor confidence and project momentum.

Transmission infrastructure and land acquisition issues add to the backlog of stranded renewable and clean projects, hindering timely grid integration and operationalization.

Global and Domestic Implications

Globally, nearly $1.6 trillion worth of clean projects remains unfunded, with less than 15 projects achieving final investment decisions yearly. India’s scenario mirrors this trend, leveraging regulatory reforms and digital platform upgrades to improve the ecosystem.

Strengthening policy clarity, enhancing financing access including development and private sector funds, and expediting infrastructure upgrades are vital to propel India’s clean industry growth and align with its carbon neutrality goals.

India’s transition to a clean industrial economy hinges on bridging financing gaps and regulatory reforms. Coordinated efforts among policymakers, investors, and industry stakeholders will be critical to unlocking the untapped potential of India’s green industrial future.

Sources: Mission Possible Partnership, Industrial Transition Accelerator, Reserve Bank of India notifications.

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