India, among the world's rapidly expanding economies, is confronting the imperative to address climate change, a pressing topic for deliberation at COP28. The nation's ambitious plans to reduce GDP emissions intensity by 45 percent by 2030 from 2005 levels are closely intertwined with sustaining robust economic growth. Forecasted to reach Rs 301.75 trillion ($3.69 trillion) in 2023-24, India aims to achieve a $5 trillion economy by FY2025.

However, these aspirations necessitate significant investments, particularly in the renewable energy sector, aligning with India's objective to achieve net-zero emissions by 2070. Transitioning entails substantial funding—approximately $10.1 trillion between 2022 and 2060, a figure that escalates to $3.4 trillion if net-zero targets are advanced to 2050.

India's commitment to net-zero emissions could potentially bolster its economy by 4.7 percent above projected baseline growth by 2036, amounting to a significant $371 billion. This shift not only enhances economic prospects but also fosters environmental sustainability, potentially reducing air pollution and creating jobs within the clean energy sector.

As India advances toward expanding its renewable energy capacity, targeting 500 gigawatts (GW) by 2030, it stands at the global forefront. The country ranks fourth globally in renewable power capacity, boasting 163GW of installed energy, with the largest renewables auction market featuring over 38GW of solar and wind energy projects auctioned in 2022. Despite these strides, challenges persist, limiting renewable energy's contribution to overall power generation, currently around 14 percent.

The global downtrend in renewable costs notwithstanding, challenges in renewable deployment speed, infrastructure readiness, funding levels, and inclusivity remain. India has led discussions at the G20, emphasizing low-cost finance for the energy transition. Interest rate hikes globally have impacted renewable energy financing, demanding collaboration and innovative finance models to mitigate the impact.

In its transition, India grapples with the challenge of aligning its coal policy with climate goals. Advocating for a gradual reduction, India focuses on ultra-supercritical coal power, aiming to phase-down and explore eco-friendly alternatives while leaning toward carbon capture utilisation and storage (CCUS) technology. Demonstrating leadership, India leverages alliances and initiatives like the International Solar Alliance and Mission Innovation to drive CCUS adoption, exhibiting its commitment to climate action and sustainable growth at COP28.