Key facts
- Climate tech funding in India grew from $315 million in 2020 to $2.6 billion in 2025.
- Key sectors driving this growth include electric mobility, renewable energy, and energy-transition infrastructure.
- Investor focus has shifted towards companies facilitating large-scale energy transition implementation.
- Government initiatives like PM E-DRIVE and the REPM scheme are bolstering clean-energy supply chains.
- Around $791 million was raised across 74 funding rounds for Indian climate tech companies.
Climate technology funding in India has experienced substantial growth, increasing from $315 million in 2020 to an anticipated $2.6 billion by 2025, according to a report by Tracxn. This surge is largely attributed to heightened investment activity in sectors crucial for the energy transition, including electric mobility, renewable energy, and related infrastructure.
The India Climate Tech 2026 Report indicates a strategic shift in investor focus, moving from supporting isolated climate innovations to backing companies that can implement the energy transition on a large scale. This evolution is partly driven by India's significant reliance on imported crude oil, making technologies like renewable energy, electric mobility, and battery storage vital not only for climate goals but also for enhancing energy security.
Government initiatives are playing a key role in this transition. Programs such as PM E-DRIVE, with an allocation of Rs 10,900 crore extended until 2028, aim to boost electric vehicle adoption and charging infrastructure. Additionally, the Rs 7,280 crore Rare Earth Permanent Magnets (REPM) scheme is strengthening domestic clean-energy supply chains.
The report highlights that climate tech companies in India have collectively raised approximately $791 million across 74 funding rounds. Notably, a substantial portion, $524 million, was secured in just five late-stage deals, suggesting a preference for investing in proven, large-scale deployment businesses.