The tax expenditure on fossil fuels in India remains constant from 2024 to 2028 at 0.31% of GDP, indicating no year-on-year variation. The stability over these forecasted years suggests a steady policy environment without additional incentives or reductions favoring fossil fuel sectors. Given that there were no significant changes leading up to 2024, it appears the government may focus on maintaining fiscal neutrality.
Future trends to watch for include:
- Potential shifts towards renewable energy subsidies affecting fossil fuel tax policies.
- Policy changes responding to international climate commitments or economic shifts.
- Technological advancements impacting fossil fuel dependency and subsequent tax policies.
