India’s rapid development has come with high environmental costs. Its cities have grown, and industries have boomed, but this expansion has also contributed to air pollution, greenhouse gas emissions and ecological damage. India’s continued reliance on coal has added to these pressures.
The country’s position in the 2026 Environmental Performance Index (EPI) highlights the challenge that it faces. India ranks 176th among 177 countries with a score of 22.46 points out of 100. It is the lowest-scoring country in the South Asia region, which includes Bhutan, Sri Lanka, Nepal, Pakistan, Maldives, and Bangladesh. Although the rank is devastating, the trends tell a different story. India’s EPI score improved by 7.47 points from 2016 to 2026. Put differently, India was nearly at the lowest point in 2016 but has improved since then. India’s environmental record therefore presents a paradox: its performance has improved significantly over the past decade, yet it remains among the world’s worst performers.
The EPI is a comprehensive index produced by the researchers at Yale and Columbia Universities. The index does not simply reflect the levels of pollution in the country but rather uses a set of indicators to compare performance across 12 categories associated with environmental health, ecosystem vitality, and climate change.
India’s performance across these categories was relatively poor. It scored 15.13 points in Environmental Health, placing it at 174th, the lowest in the EPI. Its air quality score was even lower at 7.89, placing the country at 175th. It was also among the lowest countries for Biodiversity and Habitat indicators.
Air pollution stands out as one of India’s most prominent environmental challenges. The country ranked 175th globally for air quality, with an EPI score of just 7.89. Its PM2.5 concentration is a particular concern as it adversely affects human health. It is important to note that the levels of PM2.5 have improved over the past decade. India is in fact performing better on this critical indicator. Its 10-year score changed by +20%, a significant improvement, but not nearly good enough given the hazardous levels of this type of air pollution in the country.
What explains India’s improvement over the past decade? One reason for India’s environmental paradox is its reliance on coal. In terms of electricity production, India is highly dependent on coal as a source of energy.
The abundance and relative cheapness of coal have made it a central source of energy for centuries. For a growing economy, the importance of meeting energy demands is immense. As per the IEA report, coal supplied 71% of electricity in India in 2025, compared to 74% in 2024 and 76% in 2015.
India cannot give up on coal completely, as it would have economic and energy security repercussions. It requires policy interventions to curb the usage, allowing the development of alternative energy sources like nuclear and renewables. Renewable electricity generation in India is playing a significant role in cutting down the environmental impact. As per the IEA, electricity production by burning coal in India has dropped by almost 3% in 2025. The coal-based electricity production is expected to decrease marginally over the next five years, recording the third consecutive year of declines. Moreover, the monsoon season played a crucial role in reducing the need for electricity, while also helping the hydroelectric power plants across the country. The damp weather caused a dip in electricity demand and helped to recharge India’s hydropower plant reservoirs. The solar and wind electricity production also supplemented the demand.
The abundance and relative cheapness of coal have made it an attractive option for meeting the energy needs of a growing economy. According to the IEA, coal accounted for 71% of electricity production in India in 2025, down slightly from 74% in 2024 and 76% in 2015.
India cannot abandon coal entirely due to its impact on the economy and energy security. Reducing coal burning requires policies that would promote alternatives, such as nuclear and renewable energy. Renewable energy production is helping India reduce its environmental burden. According to the IEA, electricity generation from coal in India has decreased by around 3% in 2025. Electricity production from coal is forecast to decline slightly over the next five years, registering the third consecutive annual decline. Strong monsoon conditions reduced electricity demand and supported hydropower generation. The wet weather curtailed electricity demand and helped to replenish India’s hydropower resources. Increased electricity production from solar and wind also contributed to lower coal use.
Notably, India’s energy-related CO2 emissions have stalled in 2025, according to the IEA. The lack of growth in energy-related emissions reflects the strength of renewables and the impact of the severe monsoon on electricity demand. The IEA notes that this follows a similar pattern to recent years, which saw a combination of strong monsoon rains and record-breaking heat. India has shown signs of weakening the link between economic growth and increases in CO₂ emissions, partly due to the growing contribution of renewables.
Solar and wind power can help the country to meet rising electricity demand without adding to coal use. Nevertheless, it is important to put these developments in perspective. Although India has made significant gains in terms of renewables, the growth of electricity demand, particularly from coal, will put additional pressure on the environment.
India’s electricity demand is forecast to grow rapidly in the coming years. India’s electricity demand is forecast to grow by an average of 6.4% per year in the 2026-30 period, according to the IEA. Half of the additional electricity demand in India is expected to be met by solar PV; a further 24% is expected to come from coal. The IEA forecasts that coal will remain India’s largest source of electricity through 2030, albeit the share of electricity from coal is expected to decrease from 70% to 60%. From 2025 to 2030, the IEA expects that the share of electricity from variable renewables will increase from 14% to 24%.
It is therefore not necessary to view India’s transition as a shift from coal to renewables. Rather, it is important to understand this process as large-scale additions of renewables that will supplement coal and that will take time to offset the role of coal in India’s electricity production.
India’s performance in terms of climate change is also relatively weak. India ranks 130th out of 177 countries on the EPI’s climate change mitigation index. Its adjusted per capita greenhouse gas emissions trend ranks 128th among 177 countries.
India’s position on this score is also noteworthy. Although the country has a huge impact on the global environment due to its large population and economy, its per-capita greenhouse gas emissions remain relatively low.
The transition to a low-carbon electricity system in India is also important. According to the IEA, electricity-sector carbon intensities are forecast to decrease by an average of 3.4% per year in India between 2026 and 2030. They are expected to decrease from 695 gCO2/kWh in 2025 to 585 gCO2/kWh in 2030.
Nevertheless, the electricity sector's greenhouse gas emissions are forecast to increase by an average of 2.4% per year in India over the same period due to the expected increase in electricity demand.
This illustrates India’s overall dilemma. The country will be able to make the electricity that it produces cleaner on a per-unit basis, but it will continue to produce more electricity that will have additional emissions.
India’s environmental performance challenges are not limited to climate change and air pollution. As noted earlier, the country has a particularly challenging position in relation to biodiversity and habitat. India ranks 174th in the EPI for this category with a score of 9.09. Its performance across several protected area indicators was also relatively low.
Infrastructure expansion has put additional pressure on India’s ecosystems. Roads, rail, mining, power plants, and cities have all encroached on forests, natural habitats, and wetlands, placing additional pressure on India’s biodiversity. This presents another challenge for the country in terms of balancing development and the environment.
Ultimately, India’s environmental performance reflects the country’s ability to reconcile development with conservation. Its poor ranking in EPI highlights the need for improvements, but the positive change from 2016 to 2026 shows that India is capable of progress. India’s story is therefore not as simple as it may seem. The country has shown that environmental progress is possible, but its low EPI ranking shows how much remains to be done. The challenge now is to ensure that the next phase of India’s growth does not come at the cost of the environment.
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