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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The approval is aligned with the World Bank Group's new Country Partnership Framework (FY2026–
31) for India, which envisages US$8–10 billion in annual financing over the next five years to support
India's aspiration of becoming a developed economy by 2047. The partnership places particular emphasis
on creating quality jobs, strengthening infrastructure, promoting innovation, enhancing human capital,
mobilizing private investment, and building climate-resilient growth.

The World Bank's continued support reinforces international confidence in India's macroeconomic
fundamentals and reform trajectory. By improving the business ecosystem, encouraging private
investment, and fostering job-rich growth, these reforms are expected to strengthen India's long-term
growth potential, enhance productivity, and improve the country's competitiveness in the global
economy.

The World Bank has also highlighted water security as a key driver of India's future economic
development. Water availability per capita has declined significantly over recent decades due to
population growth, while climate change has increased the frequency of floods and droughts. The Bank
notes that improving irrigation efficiency, strengthening urban water supply systems, expanding
wastewater treatment and reuse, and adopting integrated river basin management will be essential to
sustaining agricultural productivity, supporting industrial expansion, creating employment, and enhancing
climate resilience. These reforms complement the Government of India's broader focus on infrastructure
development and sustainable resource management.

9. India's green economy continues to expand rapidly

India emerged as one of Asia's fastest-growing green economies in 2025, reflecting the country's
accelerating transition towards clean energy, sustainable manufacturing, and climate-resilient
infrastructure. According to the London Stock Exchange Group (LSEG) Investing in the Green Economy
2026 report, India's green economy generated approximately US$110 billion in green revenues during
2025, growing at a compound annual growth rate (CAGR) of 20 % over the past five years. This significantly
exceeds both Asia's average green revenue growth of 12 % and the global average of 10 %, highlighting
the rapid expansion of India's clean energy and sustainability-related industries.

Although India currently accounts for around 4 % of Asia's total green revenues, the country has
established a strong competitive position in several niche sectors. India contributes approximately 87 %
of Asia's green revenues from biogas energy equipment and 75 % of revenues from advanced irrigation
systems and devices, reflecting its growing leadership in sustainable agriculture, waste-to-energy
technologies, and decentralized renewable energy solutions. The report also notes that India has become
one of Asia's leading destinations for clean-energy investment, attracting nearly US$100 billion in
investment across renewable energy, energy storage, nuclear power, and energy efficiency projects
during 2025.

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