Climate Insider Brief:
- A recent report by FSG indicates a remarkable growth in India’s climate-tech sector, with investments reaching $2.8 billion by November 30, 2023, comprising 57% of the total investments garnered in the preceding year.
- The ‘mobility’ and ‘energy’ sub-sectors attracted over 94% of the total investments from 2019 till November 2023, reflecting a significant focus on sustainable solutions.
- Rishi Agarwal, MD of FSG, emphasises the critical role of climate innovation in India’s future, attributing the surge in investments to increased awareness among citizens, businesses, and governments.
PRESS RELEASE – March 27, 2024 – A recent report reveals that India’s climate-tech sector has attracted significant investment, reaching $2.8 billion by November 30, 2023. This amount represents a substantial 57 percent of the total investment garnered in the previous year. The report, issued by consulting firm FSG, highlights a predominant focus on the ‘mobility’ and ‘energy’ sub-sectors, which collectively secured over 94 percent of the total climate-tech investments from 2019 till the end of November 2023.
Rishi Agarwal, MD, and Head-Asia at FSG, emphasised the crucial role climate innovation and sustainable practices play in India’s future. He underscored the necessity of prioritising climate solutions on the national agenda. The surge in investment within the climate-tech sector can be attributed to rising awareness among citizens, businesses, and governments regarding the importance of embracing sustainable practices. Moreover, government incentives have steadily enhanced investor interest in the sector.
Agarwal expressed optimism about the sector’s long-term growth trajectory, despite short-term fluctuations, citing increasing awareness and government incentives as key drivers.
Furthermore, India’s bond market anticipates a significant boost with an expected influx of up to $30 billion following the nation’s inclusion in a major global index starting in June. According to Standard Chartered Plc, this inclusion will attract a wave of new investors to India’s bond market.
Parul Mittal Sinha, Head of India Financial Markets at Standard Chartered, anticipates $25-30 billion of additional inflows into the Indian bond market. This surge is expected as index weights increase from June, drawing new investors to India. Global funds have already injected around $10 billion into Indian bonds since JPMorgan Chase & Co.’s announcement of the nation’s inclusion in its emerging-market debt index.
Sinha noted a significant interest among foreign investors in various investment routes in India, including rupee-denominated but dollar-settled bonds and derivative instruments. She highlighted the importance of monitoring the Reserve Bank of India’s commentary on liquidity in the upcoming policy announcement and suggested that a change to a neutral stance could significantly impact the market. Additionally, she observed the RBI’s tolerance for currency volatility, indicating a continued trend of allowing the rupee to adjust.
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SOURCE: Diya TV
Featured Image: Credit: The Guardian
