NSO survey: Indian firms allocate just 2.75% of capex to green energy in FY25

NOOR MOHMMED

01/May/2025

NSO survey shows only 2.75% of firms plan capex for diversification and green technologies in FY25.
Just 1.38% of firms intend to allocate capex to energy transition and conservation.
The survey reflects a lack of commitment from India Inc. towards investing in sustainable and future-focused green energy technologies.

A recent survey conducted by the National Statistics Office (NSO) has revealed concerning trends in India's private sector capital expenditure (capex) for FY25. Despite increasing global focus on sustainability, less than 5% of private firms have planned to allocate their capital expenditure toward diversification and green energy technologies.
The survey, which surveyed capital expenditure intentions between November 2024 and January 2025, shows that only 1.38% of private enterprises intend to use their capex for energy transition and conservation, a critical area for achieving India’s environmental and energy goals. Meanwhile, a slightly higher percentage, 2.75%, have earmarked funds for diversification, which includes green technologies, but this is still a low figure for such an important sector.
The data further indicates that many enterprises have not prioritized these areas at all. In fact, 10 out of 17 surveyed fields reported zero allocation for energy transition and conservation, underscoring a significant gap in corporate India's commitment to green energy and sustainability.
This limited investment in green technologies suggests that, despite growing awareness, India’s private sector remains relatively indifferent to the urgent need for green and energy-efficient solutions. As the global economy transitions toward sustainability, India’s corporations may need stronger incentives or policy guidance to make meaningful investments in these crucial areas.

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NSO survey: Indian firms allocate just 2.75% of capex to green energy in FY25

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