Mumbai, 12th February 2025: Shri Jayant Sinha, Senior Advisor to the IVCA Climate and Sustainability Council, and Former Union Minister of State for Finance and Civil Aviation, participated in an insightful discussion at IVCA Conclave 2025. Held at Trident, Nariman Point, Mumbai, the session covered key policy developments, the evolving role of alternate capital, and India’s commitment to sustainable finance.
When asked about his interest in the green transition, Shri Sinha highlighted the transformative role of India’s alternative investment industry. ‘One of the biggest drivers of our success is the growth of the alternative investment fund (AIF) industry, which has now expanded to around 700 AIFs managing ₹7-8 lakh crore. This has become a powerful engine for private markets and, in turn, for the economy. In 2014, the AIF industry was at zero—SEBI had created the structure, but without clarity on tax treatment, there was no capital flowing in. The breakthrough came in the 2015-16 Union Budget when we introduced the tax pass-through for AIFs, resolving the issue of double taxation. This opened the door for foreign investors, bringing in significant capital. For years, we worked to ensure tax parity between AIFs and mutual funds, and with the latest budget, we have finally achieved that. Now, public and private markets are operating on a level playing field,” he said.
Discussing climate finance and sustainable investment, Shri Sinha stressed the urgency of immediate action. “Climate change is accelerating at an alarming rate. The UN estimates that by 2100, the world will warm by 3°C. So far, we’ve seen a 1.2°C increase over the past 200 years, but in the next 75 years, we are looking at another 1.8°C rise—three times the historical rate. This will trigger disruptive changes to our environment, economy, and society. If we don’t get adaptation, mitigation, and decarbonization right, it will threaten our growth, job creation, and overall way of life,” he warned.
He emphasized the critical role of green investment in addressing these challenges. “The solution is not just government policies; it lies in mobilizing green capital. We need large-scale investment in renewable energy, energy-efficient infrastructure, electric mobility, and sustainable supply chains. The opportunities for sustainable development exist across every sector of the economy, making this a multi-trillion-dollar investment opportunity. By building a cleaner and greener world, we are also securing India’s long-term economic future,” Shri Sinha added.
The discussion underscored the importance of collaboration between policymakers and investors in fostering a resilient capital ecosystem. With India’s rapid economic expansion and growing global interest in its markets, strategic policymaking and private capital are set to play a crucial role in driving innovation, infrastructure growth, and financial inclusion. The session provided valuable insights for investors navigating India’s evolving regulatory and investment landscape.
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