India Attracts Foreign Investment for Net-Zero Goals
Key Ideas
- Citigroup Inc. predicts USD 100 billion foreign investment in India, focusing on high-tech manufacturing, infrastructure, and climate-change projects.
- India targets USD 110 billion annual foreign direct investment, with companies aiding in net-zero goals benefiting from capital inflows.
- Significant investments in clean energy in India, with plans to add 500 GW of non-fossil fuel energy and secure USD 1 trillion in solar power investments by 2070.
- Incentive program of USD 2.2 billion for electric vehicle battery manufacturing attracts companies like Reliance Industries, JSW Neo Energy, and Ola Electric Mobility.
Citigroup Inc. banker, K Balasubramanian, forecasts that foreign investors will inject up to USD 100 billion into India this fiscal year, particularly in high-tech manufacturing, infrastructure, and climate-change projects. India aims to attract USD 110 billion annually in foreign direct investment over the next seven years. Companies contributing to India's net-zero objectives are expected to benefit from this capital influx, according to Balasubramanian. Investments are flowing into sustainable energy sectors such as solar, hydrogen, and ammonia. Electric vehicles represent a significant opportunity in the energy consumption domain. India has made substantial strides in clean energy, with over 100 gigawatts of capacity added in the last decade. The nation has committed to installing 500 gigawatts of non-fossil fuel energy by 2030 and strives to secure USD 1 trillion in solar power investments by 2070 to achieve its net-zero target. Furthermore, India has launched a Rs 18,100 crore (USD 2.2 billion) incentive program to bolster electric vehicle battery manufacturing. Companies like Reliance Industries Ltd., JSW Neo Energy, and Ola Electric Mobility have been selected to enhance battery capacity production and access incentives under this initiative. Balasubramanian emphasizes that foreign capital is attracted to regions offering production cost advantages, with skill and value addition serving as key factors driving such investments.
Topics
India
Clean Energy
Infrastructure
Climate Change
Electric Vehicles
Manufacturing
Sustainable Development
Foreign Investment
Investment Incentives
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