New Delhi: Credit rating agency ICRA has cautioned that India’s growing dependence on imported clean-energy technologies could lead to nearly 70 percent of capital investment flowing to countries such as China if domestic manufacturing does not keep pace with the country’s 2030 energy transition goals.
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In its latest Climate Series: National Manufacturing Mission (NMM) report released in September 2025, ICRA said the power, industry, and transport sectors account for nearly 90 percent of India’s carbon dioxide (CO₂) emissions. While the government has made progress in renewable energy adoption, it warned that further acceleration is needed in green hydrogen production and electric vehicle (EV) deployment to meet the 2030 Nationally Determined Contribution (NDC) targets.
According to ICRA, India remains significantly dependent on imports for core clean-energy technologies such as solar photovoltaic modules, battery storage systems, and advanced wind turbine components, with import reliance ranging between 20 percent and 90 percent.
“If this dependency persists while achieving the 2030 targets for the carbon emitting sectors, nearly 70% of the capital investment could flow to countries like China, which are leading cleantech manufacturers globally,” the report said.
To counter this challenge, the government launched the National Manufacturing Mission (NMM), focused on strengthening domestic clean-technology production. The mission is aligned with the country’s NDCs, existing industrial schemes, and other policy frameworks, and seeks to promote the participation of MSMEs and start-ups in clean-tech manufacturing.
“The GoI has taken a strategic step by launching the NMM and aligning it with the Nationally Determined Contributions (NDC) targets, existing schemes, and policies. By actively supporting MSMEs and start-ups, the Mission lays a strong foundation for industrial transformation,” ICRA noted.
In the Union Budget 2025–26, 10 percent of the mission’s total outlay was earmarked for the current fiscal, reflecting the government’s intent to fast-track implementation. By August 2025, the mission had already onboarded over 500 MSMEs and start-ups, ICRA said.
ICRA emphasised that the NMM’s success will depend on effective execution and policy coordination across ministries. “If implemented well, it can significantly reduce import dependency, generate employment in the cleantech sector, and establish India as a global exporter of clean technology products by leveraging domestic strengths,” the report said.
The agency added that a robust domestic manufacturing ecosystem would be critical not just for meeting India’s climate goals but also for enhancing energy security, retaining capital flows within the economy, and positioning India as a competitive clean-tech hub globally.
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ICRA’s assessment underscores that India’s decarbonisation efforts must now move beyond deployment to domestic value creation — ensuring that the country’s clean energy future is Made in India.