India to Attract $10 Billion in Renewable Energy in 2023: Bank of America

India to Attract $10 Billion in Renewable Energy in 2023: Bank of America

India could attract about $10 billion in renewable energy investment in 2023—a bright spot as public markets remain largely shut to raising big-ticket capital—said the top officials of Bank of America in India.

Kaku Nakhate, the President and India Country Head of Bank of America, in an interview, said that deals and investments will continue to flow into areas such as electric vehicles and green hydrogen, as investors need energy transition in their portfolios.

Sectors such as renewable energy and retail are set to benefit as India performs better than other emerging markets in drawing investors. Despite deal-making being hit globally by increasing interest rates and market volatility, India’s geopolitical stability helps position it for greater inflows. The bank also expects India to benefit from “friend-shoring” by companies that are rethinking their supply chains, disrupted by COVID-19 and the Ukraine war. India, with its democratic traditions and robust domestic markets, is well suited to attract this capital, Nakhate said.

Investors and companies attending the Bank of America’s recent North American roadshow were impressed by the Indian government’s clear targets to achieve net zero carbon, Nakhate said. The lender will continue to build out its distressed debt financing business in the renewable energy sector, which has generated double-digit returns, she said.