India’s climate spending rises to 5.6% of GDP, Nirmala Sitharaman says at Munich
Times of India
by TOI BUSINESS DESKFebruary 14, 2026
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India has significantly increased its climate action spending over the past six years, with allocations rising from 3.7% of GDP to nearly 5.6%, according to Finance Minister Nirmala Sitharaman. Speaking at the Munich Security Conference, she emphasized that India is taking strong domestic steps to meet its environmental commitments rather than relying solely on international support. The jump in spending reflects India's growing role in global climate efforts and its commitment to achieving its Nationally Determined Contributions (NDCs) without waiting for external financing or technology transfers.
Sitharaman highlighted that India has already invested substantial resources into climate action, focusing on renewable energy and carbon capture technologies. She noted that the country has achieved two-thirds of its renewable energy targets under its NDCs, four years ahead of schedule. The Union Budget 2026-27 includes dedicated funds and incentives for carbon capture strategies to support India's transition to a greener economy. These measures aim to help businesses reduce their carbon footprint while promoting sustainable development.
The finance minister also stressed the importance of adaptation and resilience in climate policy, arguing that equal attention must be given to building capacity to withstand the impacts of climate change. She called for "differentiated treatment" in sharing the financial burden of climate action, advocating for a "polluter pays" principle where countries with lower historical emissions contributions should not bear an equal share of the costs.
Sitharaman's remarks underscored India's shift from dependence on international aid to leveraging its own resources for climate action. She acknowledged the importance of global technology transfers and financial flows but emphasized that India is taking proactive steps to address climate change, setting an example for other nations, particularly those in Africa facing economic constraints. Her comments also highlighted the need for fair and practical global cooperation on climate finance and technology.
India's increasing focus on domestic climate action not only reflects its commitment to global environmental goals but also positions it as a key player in shaping international climate policies. By prioritizing renewable energy, carbon capture, and adaptation measures, India is demonstrating its leadership in driving sustainable development and reducing emissions while advocating for a more equitable distribution of climate responsibilities worldwide.
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Originally published on Times of India on 2/14/2026