India stands at a pivotal moment. As one of the fastest-growing global economies and a rising innovation hub, it is uniquely positioned to lead in building climate solutions that work for the world. Entrepreneurs are drawing on India’s deep talent pool, a problem-solving mindset shaped by constraint, and a lived understanding of the Global South - not to chase emissions reductions alone, but because industries increasingly recognize that rethinking how we produce, grow, move, and power things is critical to staying competitive and creating long-term economic value in a changing world.
Our report on private investments in climate tech innovations presents a data-backed analysis of how startups and venture investments are shaping these efforts. The report tracks 2020–2024 funding trends across India and global markets across five sectors: energy, food and land use, transportation, industrial decarbonization, and carbon and climate management.
Key takeaways
Heavy sector bias: The bulk of India’s climate tech investments fall in 2 thematic areas – transportation and agriculture, which together have absorbed 85% of Indian climate tech investments. That said, energy is beginning to see momentum, contributing 15% of climate tech investment in 2024 and showing consistent growth from previous years.
Mismatch between emissions and investments: In India, nearly 50% of climate tech capital has gone to transportation, despite the sector contributing just 9% of total emissions. The imbalance towards transportation is a global trend but India’s skew is more heavily tilted. India’s investment in food and agri (specifically solutions focused on food waste) also draw significantly more capital than global peers as 35% of capital went into this theme (versus 18% for global climate tech investments).
Indian climate investments consistently crossing $1B annually: Despite fluctuations in global funding, India’s climate tech investment landscape has remained relatively resilient. Annual investments have consistently crossed the $1 billion mark over the last few years. While 2023 saw a global slowdown in climate tech funding, Indian funding recovered quickly, with larger funding rounds leading the way.
Maturing of business models: The startups receiving funding in 2024 reflected a shift toward more scalable and commercially viable models, with multiple approaches gaining traction in each domain. In transportation, large rounds went to both EV OEMs and charging infrastructure players. In food and agriculture, specialist companies addressing food loss, including those focused on the seafood value chain, secured significant investment. In energy, capital was raised for capex-heavy megafactories as well as for scaling modular rooftop solar solutions. These trends indicate that climate innovation in India is no longer confined to pilots - it is moving toward implementation at scale.
