Data Visualisation
Carbon Tax Could Help India Recover Nearly 90% of Fossil Fuel Tax Revenue Losses by 2047
India’s transition away from fossil fuels could significantly reduce government revenues from fuel taxation over the coming decades.
A gradually increasing carbon tax aligned with Viksit Bharat 2047 and Net Zero 2070 pathways could help offset these losses. The analysis estimates that while India could lose nearly ₹101 lakh crore in fossil fuel tax revenues between 2026 and 2047, a carbon tax on electricity and industrial sectors could generate approximately ₹90 lakh crore over the same period.
This infographic explores how carbon pricing could support both India’s decarbonisation goals and long-term fiscal transition.