SynopsisIndia's climate-tech sector has attracted significant investment, with startups raising $12.8 billion by June 2026. Driven by decarbonisation goals and energy independence, funding surged from $315 million in 2020 to $2.6 billion in 2025. Government initiatives and development finance institutions are fueling growth, with renewables leading but other segments gaining traction.ETtechIndia's climate-tech startups have raised about $12.8 billion between 2008 and June 2026 across 1,583 companies, according to Tracxn's India Climate Tech 2026 Report.The report points to growing momentum in the sector, with annual funding increasing from around $315 million in 2020 to $2.6 billion in 2025 as climate action, policy support, private capital, and energy-security goals increasingly align.The Tracxn report highlights how this is creating new opportunities for startups and investors.Growth policyWith nearly 85% of its crude oil imported, India is focussing on technologies that support both decarbonisation and energy independence. These include renewable energy, electric mobility, batteries, and critical minerals, says the report. Government initiatives are playing a key role. The PM E-DRIVE scheme, extended until 2028, supports electric vehicle (EV) adoption and charging infrastructure. The Carbon Credit Trading Scheme, set to take effect in October 2026, will cover around 490 industrial units across nine sectors. Meanwhile, the Rare Earth Permanent Magnets scheme aims to strengthen domestic clean-energy supply chains.Bigger dealsThe report added that funding activity has increasingly moved towards larger, conviction-led rounds. Notable transactions include Inox Clean Energy's $344 million series D round in 2026 and Erisha E Mobility's $1 billion series D round in 2025.Development finance institutions have been active investors. British International Investment participated in three funding rounds involving Euler Motors, GreenCell Mobility, and Ecofy. Other investors include IFC, FMO, and Finnfund.Renewables lead, others gain tractionRenewable energy remains the largest climate-tech segment, attracting $1.5 billion in cumulative funding.But investment is spreading across the ecosystem. Solid waste management has secured $477 million, followed by energy efficiency tech ($352 million), air pollution management ($237 million), and water and wastewater management — $208 million. Together, these segments have attracted more than $1.2 billion cumulatively.2026 sees fewer but larger roundsClimate-tech startups raised $791 million across 74 rounds during the first five months of 2026. Late-stage funding accounted for $524 million across just five deals, while seed-stage companies raised $61 million across 44 rounds.Noida emerged as the most-funded city. The sector also recorded 15 first-time funded companies, six new soonicorns, two IPOs, and one acquisition during the period, according to the report. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now