India’s G20 Sherpa emphasized that the country must take decisive action to secure its position in the global clean energy economy, or it could risk importing up to 80% of its clean energy requirements
India's G20 Sherpa, Amitabh Kant, stated on Friday that despite the government's introduction of several initiatives worth Rs 78,000 crore to support the country's green transition, including the Production Linked Incentive (PLI) scheme and automobile manufacturing schemes like FAME, the industry continues to rely on fossil fuel vehicles.
Addressing the 'Bharat Climate Forum 2025', he said, “If you do not become an EV manufacturer in two-wheelers, three-wheelers, four-wheelers, or buses, you will lose the market forever. A radical shift towards cutting-edge technologies is essential to drive growth; otherwise, India risks being left behind and becoming a major importer—just as we once depended on imports for mobile phones and a range of electronic goods. In the clean tech sector, we could end up importing up to 80% of our requirements.”
Kant added that to support this transition, the government has introduced several schemes worth Rs 78,000 crore, including PLI and automobile manufacturing initiatives like FAME. However, the industry continues to persist with fossil fuel vehicles.
On China’s dominance in clean tech manufacturing, he said, “In solar manufacturing, from polysilicon to ingots, wafers, cells, and module panels—China dominates every stage of the supply chain. In solar, we import 80% of components, with only 20% sourced domestically. In batteries, 85% is imported, and just 15% is produced locally. In EV motors, the import share is 75%, while the domestic component is 25%. For electrolyzers, 80% is imported, and 20% is made in India. However, wind energy is the only sector where we have a stronger domestic presence, with 60% produced locally and 40% imported.”
Kant asserted that India must take decisive action to secure its position in the global clean energy economy.
According to S&P Global, in 2023, India imported approximately $6.5 billion worth of clean tech products from China, covering key sectors such as solar PV modules, batteries, EV motors and controllers, electrolyzers for green hydrogen, and wind energy components.
The former NITI Aayog CEO also stressed the importance of facilitating the flow of credit to the domestic industry. “We must shift our mindset towards concrete action by outlining clear action points. This will enable us to compete directly with China in key sectors and ensure that domestic demand is met by Indian industry and young startups willing to disrupt the market. Achieving this requires a substantial flow of capital. Access to credit from financial institutions is crucial, as India's private credit-to-GDP ratio remains low at 50%, compared to 180% in other countries, 200% in China, and 220% in the United States.”
Therefore, private credit must flow more freely to both established companies and young startups.