ndia will need a cumulative investment of nearly $22.7 trillion to achieve its net zero emissions target by 2070, even as coal consumption is expected to continue rising until 2047, according to a new roadmap released by Niti Aayog. The report lays out the scale of financial and structural changes required as India pursues its twin goals of becoming a developed nation by 2047 and reaching long term carbon neutrality.

The roadmap has been prepared as part of India’s broader climate planning ahead of its next set of international climate commitments. It underlines that the transition to a low carbon economy will be gradual and complex, shaped by development priorities, technology availability and financing constraints.

Coal To Remain Central In Medium Term

One of the key findings of the report is that coal will continue to play a role in India’s energy mix for more than two decades. According to the projections, coal consumption is expected to increase until 2047, reflecting the country’s growing energy demand and the need for reliable base load power as the economy expands.

The report notes that this trajectory is likely to influence India’s updated Nationally Determined Contributions for 2035. While clean energy capacity is set to rise sharply, coal is expected to support industrial growth and electricity demand during the transition phase, especially given current technological and cost limitations.

Clean Energy Share To Rise Sharply

Despite the continued reliance on coal in the medium term, the roadmap outlines a significant shift towards non fossil fuel power generation. The share of non fossil sources, including captive power, is projected to rise from about 23 per cent in 2025 to 65 per cent under existing policies, and up to 80 per cent by 2050 under a net zero pathway.

By 2070, non fossil fuel power generation is expected to exceed 80 per cent even under current policy settings, and reach 100 per cent in the net zero scenario. The transition strategy focuses on large scale electrification of energy use, prioritisation of green electricity, demand side management through Mission LiFE, improved efficiency and circularity, and access to lower cost external finance.

Financing Gap Remains A Major Challenge

The report highlights that the power sector alone will account for more than half of the total investment requirement, underlining its central role in decarbonising the economy. On average, India will need to invest around $500 billion every year, a sharp rise from the estimated $135 billion annual investment projected for 2024, of which only about $70 to $80 billion currently goes into clean energy.

Around $8 trillion of the total investment will need to be front loaded by 2050, including nearly $5 trillion for the power sector due to the capital intensive nature of renewable energy and grid infrastructure. The estimated financing gap stands at about $6.5 trillion, with expected inflows falling well short of what is required under the net zero scenario. To bridge this gap, the report recommends setting up a dedicated National Green Finance Institution.

Development And Climate Goals To Move Together

Niti Aayog has expressed confidence that India can chart a distinct development path that balances growth with sustainability. The report argues that India has the opportunity to build an Indian development model that integrates economic expansion, technological progress and climate responsibility, offering lessons for other developing economies.

The study has been prepared by ten inter ministerial working groups using scenario based modelling across sectors such as energy, industry, transport and macroeconomics. It is intended to serve as a reference point for policymakers as India navigates the long and investment heavy road towards achieving Viksit Bharat by 2047 and net zero emissions by 2070.

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