Moody's Ratings expects India's fast-growing economy and expanding population to drive up carbon-intensive product demand.
India's share of global greenhouse gas emissions has increased to 7.5% in 2022.
The government's ability to attract private investment and address negative spillovers from decarbonization will determine India's credit exposure to carbon transition and social risks.
India has expanded its renewable energy capacity, but decarbonization in transportation and the wider economy has been slower.