India's energy transition journey requires investments ranging between $190 billion to $215 billion over the next seven years, according to an analysis. 

In its latest report, credit rating agency Moody's said that India has made significant strides in working towards meeting decarbonization goals, with the country eyeing to achieve net zero emissions by 2070. 

Population Constraints

However, the US-based agency warned that the country's fast-growing economy and rising population will drive demand for energy, especially from carbon-intensive sectors. 

"India has made rapid progress in building its renewable capacity. But, its fast-growing economy, and large and expanding population, will drive up demand for energy and products from carbon-intensive sectors," said Moody's. 

The report from Moody's comes just a few days after India's Central Electricity Authority revealed that the country's total renewable capacity crossed 200 gigawatts as of October 01, 2024. 

CEA added that India's renewable energy-based electricity generation capacity currently stands at 201.45GW, accounting for 46.3 percent of the nation's total installed capacity. 

High Credit Exposure

The analysis added that India has high credit exposure to various elements including environmental risks, driven by high temperature, pollution and water stress. 

According to Moody's India is also highly exposed to social risks primarily due to income inequality, health and safety concerns, and limited access to basic services. 

The report warned that further climate-related shocks could impair activity in sectors such as agriculture and informal services, and result in economic and social risks.

The US-based agency added that the country requires early investment in transition tlo mitigate these risks. 

"For the power sector alone, we estimate additional spending to put India on a path to global net zero at around 3.4 percent of the gross domestic product per year from fiscal 2024-25 through fiscal 2030-31, more than most other large green house gas emitters. India's private sector bears almost two-thirds of climate mitigation investment currently and is likely to continue to contribute significantly," said Moody's.