Daijiworld Media Network - Mumbai

Mumbai, Jun 4: India will require huge investments to achieve its net-zero emissions pledge by 2070 while balancing energy security and affordability, Moody’s Ratings said on Wednesday.

The power sector, a major source of India’s carbon emissions, will see the bulk of these investments, projected at around 2% of the country’s real GDP over the next decade. This includes spending on power generation, storage, transmission, and distribution.

While India aims to shift from coal to clean and renewable energy, strong economic growth means coal-based power capacity is expected to rise by 32-35% (about 70-75 GW) in the next 10 years, alongside an addition of nearly 450 GW of renewable energy.

Abhishek Tyagi, Moody’s vice president, noted that private players will remain active in renewables, with government companies also expanding their role. Solar and wind power will lead capacity additions, supplemented by smaller contributions from nuclear and hydropower.

To meet funding needs, securing diverse capital sources, including foreign debt and equity, will be vital.

Separately, under the government’s ‘Maritime India Vision 2030’, major investments are planned to enhance port capacity. Moody’s affiliate ICRA forecasts a 3-5% rise in cargo volumes in FY26, led by containers, petroleum, and fertilisers.

Data centres are emerging as a new infrastructure investment hotspot, with ICRA projecting Rs 1.6-1.8 trillion in capacity additions over the next 5-6 years, driven by rapid digitalisation and supportive policies.