The Confederation of Indian Industry (CII) has urged the government to introduce key policy and financial mechanisms to support India’s shift toward a low-carbon economy, including the creation of a dedicated Green Finance Institution and a Green Tech Expo Fund. The recommendations were made as part of CII’s pre-budget proposal ahead of the Union Budget for FY 2026-27, expected on February 1, 2026.
CII Director General Chandrajit Banerjee stated that India’s decarbonisation journey requires a broader framework beyond renewable energy and green mobility. He emphasized the importance of transition finance, strengthened ESG reporting systems, and circular economy principles to ensure a comprehensive and sustainable green transformation.
Funding the Transition
India will require an estimated USD 1 trillion in green investments over the next 10–15 years and nearly USD 10 trillion by 2070 to meet its net-zero target. However, current financing flows represent only about one-fourth of the required capital, highlighting a significant funding gap.
To address this, CII has recommended establishing a Green Finance Institution (GFI) to mobilise large-scale, low-cost funding. The proposed GFI would function as an intermediary rather than a balance-sheet lender and could be seeded by sovereign funds, global development institutions, and philanthropic sources—without requiring direct government expenditure.
CII suggested that the institution be headquartered at GIFT City to benefit from flexible regulatory norms and greater access to international capital. The institution could offer tools such as concessional finance, equity support, securitisation of smaller green projects, and credit guarantees.
Boosting Innovation and Global Presence
The industry body also proposed the creation of a Green Tech Expo Fund aimed at helping Indian clean-technology companies participate in global sustainability events and technology exhibitions. The goal is to support international partnerships, funding opportunities, and technology transfers.
According to CII, India’s growing clean-tech market offers opportunities for innovation and leadership in areas like advanced energy solutions, low-carbon manufacturing, and industrial decarbonisation.
Circularity and Resource Efficiency
CII also recommended policy measures to strengthen recycling and resource recovery systems. This includes mandatory recycling targets for lithium batteries and electronic waste, along with certified tracking systems to prevent export of unprocessed scrap.
It further suggested fast-track clearances, fiscal incentives, and capacity-building programs to develop domestic refining infrastructure for critical minerals.
The chamber highlighted that environmental reforms should extend beyond renewable energy and electric vehicles to include regulatory simplification, recycling systems, and green construction practices.
Banerjee added that these measures will not only support sustainability goals but also unlock new investment avenues in India’s emerging green economy.
Summary
CII has recommended the formation of a Green Finance Institution and a Green Tech Expo Fund to strengthen India’s transition to a low-carbon economy. The industry body highlighted the need for scalable transition finance, circular economy policies, and technology promotion as the country works toward long-term net-zero goals.
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