The Confederation of Indian Industry (CII) has put forth a set of strategic proposals for the FY27 Union Budget.
CII has urged the government to establish a Green Finance Institution (GFI) and a Green Tech Expo Fund to drive sustainable growth and global competitiveness. It emphasizes the need for robust institutional mechanisms to bridge the financial gap in India’s green transition.
The industry body underscores that advancing a green economy is a strategic necessity as India strives to become a $5 trillion economy and achieve its net-zero by 2070 target.
Mobilizing green capital:
CII’s primary recommendation is the creation of a dedicated GFI. The need is driven by an estimated $1 trillion investment requirement over the next 10-15 years, with current green finance flows meeting only about 25% of this need.
Objective: To mobilize large-scale, long-term, and low-cost capital for green projects.
Focus Areas: Renewable energy, clean mobility, green buildings, and industrial decarbonization.
Structure: Proposed to be structured as an intermediary and seeded by multilateral development banks and sovereign funds, entailing no direct fiscal outlay from the government.
Location: Suggested to be domiciled in GIFT City, Gandhinagar, to leverage regulatory flexibility and attract foreign capital.
Instruments: GFI could offer concessional loans, equity support, credit guarantees, and securitization of small-scale green assets to reduce project financing costs.
Globalizing Indian green tech:
In addition to the GFI, CII has proposed the creation of a Green Tech Expo Fund.
Purpose: To help globalize India’s green tech innovations and expand market access for domestic clean-tech firms.
Function: The fund would support the participation of Indian green technology enterprises in international sustainability and technology expos, facilitating collaborations with global investors, buyers, and technology partners.
Circular economy:
Beyond finance, the CII recommendations advocate for a holistic approach, including measures for a stronger circular economy and streamlined environmental approvals.
Recycling Mandates: CII suggests mandatory recycling and urban-mining targets for lithium batteries and electronics, along with strict certification, to curb the export of unprocessed scrap and reduce import dependency on critical minerals.
Circular Economy Parks: Policy support is recommended for developing 15 circular economy parks (CEPs) over the next three years, expanding to 45 in five years, focused on key waste streams like e-waste, plastics, and batteries.
Unified Clearance Authority: To speed up green projects, the CII proposes establishing a unified Environmental and Climate Clearance Authority (ECCA) with fully digital integration and risk-based fast-track approvals.
