India needs over $10 trillion for its green transition by 2070, relying heavily on foreign capital.

However, recent rupee depreciation—3.2% from October 2024 to January 2025—has increased financing risks for clean energy projects. Historically, the rupee devalues by 3% annually, but recent fluctuations have made foreign investors cautious. In FY2023-24, India attracted $3.6 billion in FDI for non-conventional energy, about 8% of total FDI, but this remains insufficient for its green goals. The country also raises foreign capital through green bonds and asset refinancing. To maintain investor confidence and secure necessary funds, India must implement hedging strategies and government support to mitigate currency risks and sustain its clean energy transition.