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US to Boost Investment in India’s Clean Energy Sector to Accelerate Green Transition

Clean Energy

Business Honor
16 September, 2024

US International Development Finance Corp. eyes more deals to support India’s clean energy goals, focusing on solar, wind, and EV industries.

The US International Development Finance Corp. (DFC) is set to increase its investment in India’s clean energy sector, following recent loans to solar equipment manufacturers. Among these deals is a $500 million loan to First Solar Inc. for its manufacturing facility in Tamil Nadu, furthering US support for India's green energy ambitions.

Nisha Biswal, deputy CEO of the DFC, highlighted the potential for expanding clean energy financing, including solar, wind, cooling, and the electric vehicle (EV) value chain. “One of the key conversations we are going to have is clean energy manufacturing,” Biswal said in an interview, signaling ongoing discussions to further boost renewable energy initiatives.

The DFC has already extended nearly $4 billion in financing to India, making it the agency’s largest single market. This investment comes as India, the world’s third-largest carbon emitter, faces rising energy demands.

India requires significant investment in clean energy, grid improvements, and electric vehicles to meet its climate goals. Prime Minister Narendra Modi has pledged to achieve net zero carbon emissions by 2070, aiming to balance the country’s rapid industrial growth with environmental sustainability. As the US-India clean energy partnership deepens, the collaboration is seen as a critical step towards decarbonizing one of the world's most populous nations.