India’s climate-tech investment may shift in 2027, with deep-tech, energy storage, green-asset financing, and energy-efficient data-centre infrastructure set to drive the next phase of capital deployment, according to a new report by Ostara Advisors.
India’s first specialist investment bank for deep-tech and sustainability released its 2026-2027 India Climate Tech and Deep Tech Deal Report on Tuesday, describing a market that is becoming increasingly selective as capital follows energy security, domestic manufacturing, critical technologies and specific infrastructure bottlenecks.
The report said the climate narrative has shifted strategically, with energy security, domestic manufacturing, critical minerals, and deep-tech capabilities becoming intertwined with the energy transition. It noted that public and private capital is now more targeted at addressing the bottlenecks that determine the pace and scale of technology deployment.
The report identifies four areas expected to shape the next round of investment: deep tech, energy storage, green-asset financing and energy-efficient data-centre infrastructure. It also finds opportunities across storage, carbon markets, green hydrogen, nuclear power and the infrastructure supporting India’s AI and data-centre build-out, including firm renewable power, grid equipment, cooling and water systems.
A key finding is that Series A and Series B companies should find a deeper domestic investor pool over the next 12 to 18 months, as new India-domiciled growth funds and government-backed deep-tech capital come online.
Regulatory milestones through FY 27-FY28, including carbon markets, solar manufacturing, green gas, and EV localisation, are expected to shape industry growth and investment decisions as India’s energy transition enters a critical phase.
Commenting on the outlook, Vasudha Madhavan, Founder of Ostara Advisors, said India’s deep-tech and climate-tech sectors are approaching an inflection point.
“The next phase of growth will depend not only on the availability of capital, but also on our ability to channel patient growth capital towards technologies that can be commercialised at scale,” Madhavan said. “The focus for investors will be to distinguish promising innovation from businesses that can build durable commercial models and deliver long-term value.”
The report reinforces the importance of a long-term investment approach, where technology development cycles can be extended, and commercial outcomes depend on patient capital, execution capability and supportive market infrastructure.