The Indian climate-tech sector attracted $2.8 billion investment till November 30, 2023, representing 57 per cent of the total investment garnered in the previous year, a report showed on Thursday.
The investment activity has been driven primarily by significant funding in the 'mobility' and 'energy' sub-sectors, which collectively secured over 94 per cent of the total climate-tech investments in India from 2019 till the end of November 2023.
This dominant trend underscores the critical focus on these areas within the broader climate technology field, according to the report by consulting firm FSG.
"It highlights the role climate innovation and sustainable practices play in our nation's future, underscoring the importance of prioritising climate solutions in our national agenda,” said Rishi Agarwal, MD and Head-Asia at FSG.
The overall investment growth in the climate-tech sector in recent years can be attributed to several key factors.
"Primarily, there has been a significant rise in awareness among citizens, businesses, and governments regarding the importance of embracing sustainable practices," the report stated.
Additionally, the government has steadily enhanced incentives in the sector, sparking interest among investors.
"Despite short-term fluctuations, the long-term growth trajectory of India's climate-tech sector remains promising, underpinned by increasing awareness and government incentives," said Agarwal.
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