New Delhi: As India moves closer to its goal of becoming a $5 trillion economy, leading industry body Confederation of Indian Industry (CII) on Sunday urged the government to set up a dedicated finance institution and tech expo fund to promote the green economy. “As there are significant gaps in long-term and low-cost capital availability in the country, advancing a green economy is no longer a choice, but a strategic necessity,” the CII said.
In its pre-Budget suggestions, the industry chamber has suggested establishing a dedicated Green Finance Institution (GFI) to mobilise large-scale, low-cost capital for India’s green transition across renewable energy, clean mobility, green buildings, and industrial decarbonisation.
“The institution could be domiciled in the GIFT City in Gujarat to leverage regulatory flexibility and attract foreign capital. It could offer concessional loans, equity support, credit guarantees, and securitisation of small-scale green assets to reduce project financing costs,” the industry body said in a statement.
As far as a green tech expo fund is concerned, the CII also suggested that it would help globalise India’s green tech innovations. The fund could support participation of Indian enterprises engaged in producing green technology, in global sustainability and technology expos, facilitating collaborations with global investors, buyers, and technology partners,” it said.
On green transition finance, the chamber also said that India needs an estimated $1 trillion in green investments over the next 10-15 years, cumulatively reaching nearly $10 trillion by 2070, to achieve the goal of net zero emissions by 2070. “However, current green finance flows cover only about 25 percent of this need, highlighting significant gaps in long-term, low-cost capital availability,” it said.
The industry body further suggested that there should be mandatory recycling and urban-mining targets for lithium batteries and electronics with strict certification to curb unprocessed scrap exports. “Fiscal incentives and fast-track clearances could be facilitated to boost domestic refining capacity and strategic stockpiling of recovered critical minerals,” it said.
