INDIA’S GREEN RUSH: THE TOP 5 SECTORS CATCHING INVESTOR ATTENTION

• Publish on Jun 27, 2025
• Read Time 5 min

Building a climate project? Here’s where the money is going.

Instead of looking for investors for your green project, look for the green project sectors that are getting all the attention from investors.

With supportive policies, rising investor interest, and bold national targets, several green sectors are seeing a surge in financing opportunities.

If you're building a climate-positive business or exploring new eco-friendly sectors, here are five sectors that show high potential for growth and funding.

1. Renewable Energy: Shine in the brightest opportunities

   India ranks among the top three countries in terms of renewable energy capacity, with solar energy leading the charge. From large-scale solar parks to decentralized rooftops, funding is well-structured, with clear and measurable financial returns

   Structured financial tools like solar financing and solar panel loans are making clean energy more accessible to SMEs and households, backed by government schemes and lending guidelines for priority sectors.

   Opportunity: Rooftop, hybrid, and utility-scale solar projects are attracting fast-moving capital from banks, NBFCs, and ESG-aligned funds.

2. Electric Mobility & Battery Care: Plug into India’s electrifying EV ecosystem

   India’s EV ecosystem is evolving rapidly. Fleet electrification, battery swapping, and charging infrastructure are now key investment zones. Fintechs and EV finance companies are stepping up with new models for 2-wheeler electric vehicle loans, tailored to Gig workers and last-mile users.

   Supported by FAME II and Production Linked Incentive (PLI) schemes, this sector is seeing interest from both public and private capital sources.

   Opportunity: EVs and battery tech ventures are attracting co-lending, asset-backed finance, and blended capital on a scale.

3. Green Hydrogen & Clean Fuels: Making a clean sweep of capital

   India’s ₹19,744 crore National Green Hydrogen Mission has unlocked serious investment interest. Electrolyze production, hydrogen hubs, and ammonia transport corridors are all drawing attention.

   Policy incentives, early tenders, and international partnerships are laying the foundation for long-term capital deployment in clean fuels.

   Opportunity: Developers entering this space are seeing strategic interest from energy players, infrastructure funds, and climate VCs.

4. Sustainable Finance & Green Bonds: The money is greener

   India’s green bond market is growing fast. With $21 billion already issued, SEBI’s new framework expands eligibility criteria, making sustainable finance mainstream.

   From sovereign green bonds to private issuances, capital is flowing into clean energy, transport, and climate-linked infrastructure. Lenders are also exploring investing in green products for startups and impact-driven MSMEs.

   Opportunity: Projects with verified environmental outcomes now have access to concessional finance, green-labelled bonds, and ESG funds.

5. Nature-First solutions & Climate Adaptation: The underrated green horse

   Sustainable agriculture, water harvesting, forestry, and biodiversity-linked projects are becoming fertile pastures for seed funding. Adaptation finance in India has nearly tripled in recent years, and the rise of carbon and biodiversity credits adds financial viability.

   Blended finance models and CSR-backed investments are actively funding urban greening, regenerative farming, and cold storage infrastructure.

   Opportunity: Projects that boost livelihoods and climate resilience are being prioritised by both public and private capital.

   From solar financing and EVs to clean fuels and adaptation, India’s green sectors are attracting capital with purpose. The ecosystem is more ready than ever, and funding is within reach for those who build with clarity and impact.

   If you’re solving for sustainability, the market is listening—and investing.

Ecofy’s take on this:

At Ecofy, we track sector trends, policy signals, and financing mechanisms across India’s green economy. As a sustainability-first NBFC, we support entrepreneurs with:

• Structuring projects to align with funding norms
• Navigating mechanisms like solar panel loans, EV loans, and green business loan programs
• Understanding what makes a green project “bankable” for lenders

Let Ecofy be your sounding board. Explore what’s fundable. And make your Green Project a viable choice—for both the planet’s future and yours.

FAQs

What’s the eligibility criteria for an SME loan?

You are eligible for an SME loan if you meet the following criteria:

• You’re between 25 and 65 years of age
• the business has shown profits for the last 3 consecutive financial years
• Your business can demonstrate an upward turnover trend
• financials are backed by a balance sheet audited by a registered Chartered Accountant

What’s the upper cap for a green business loan?

You can get up to ₹50 lakhs and more depending on your credit score.

How to register for NACH/ECS?

If you wish to register for a NACH/ECS mandate, kindly email us at support@ecofy.co.in or call us at 18602662059 . Our customer service team will guide you through the registration process seamlessly.

What’s my loan potential if my business is online?

Fulfil the following criteria for swift online business loan approval:

• A CIBIL score above 700
• A business that has been profitable for 3 consequent financial years
• A turnover showing an upward trend
• A balance sheet audited by a CA