India climate-tech funding could reach approximately $1.9 billion in 2026 if the pace of equity investment recorded from January through May continues, according to Ostara Research. The figure is an indicative run-rate projection, not a forecast.

Key Takeaways

  • Climate-tech companies raised $791 million across 74 equity rounds in the first five months of 2026.
  • Five late-stage transactions accounted for 71% of the funding.
  • Ostara identified a shortage of growth capital between Series B and Series C as a constraint for deep-tech companies.

India climate-tech funding concentrated in large deals

The January–May total shows that a small number of late-stage deals attracted most of the equity capital raised by Indian climate-tech companies. Ostara’s full-year estimate assumes that the pace over those five months continues; it does not establish how much funding companies will actually receive.

The research firm said emerging domestic investment vehicles could improve access to growth capital over the next 12–18 months. It identified deep technology, energy storage, green asset financing and energy-efficient data-centre infrastructure as potential investment areas for 2027.

Battery capacity and financing needs

Ostara said India’s climate investment priorities increasingly include energy security and reduced import dependence alongside decarbonisation. It noted that disruptions to supplies through the Strait of Hormuz have reinforced the importance of domestic alternatives and manufacturing in solar cells, batteries and critical minerals.

In battery manufacturing, 40 gigawatt-hours of capacity has been awarded under the advanced chemistry cell production-linked incentive scheme, while 1.4 GWh has been commissioned. Demand is projected to rise from 28 GWh in 2025 to 272 GWh by FY30.

The report also said the ₹1 lakh crore Research, Development and Innovation Fund has begun disbursing capital, and the Technology Development Board had approved 22 projects by July 2026. It identified opportunities in financing clean-energy adoption by consumers and micro, small and medium enterprises.

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