By: Nivriti Rathi, Research Analyst, GSDN
The world’s biggest green energy players are betting on India. In the renewable energy sector, smart capital is driven by three key factors: scale, long-term demand, and a stable policy environment. Few countries globally offer this powerful combination at the scale India does today. That is precisely why India is starting to feature prominently on the radar of global green energy players. In a developing country like India, it has become vital to be self-reliant in fields like renewable energy. Renewable energy sources, such as wind and solar, emit little to no greenhouse gases, are readily available and in most cases cheaper than coal or oil. Self-sufficient countries benefit from economic stability, enhanced national security, environmental sustainability, and a higher quality of life. This has led to the implementation of transformative government green energy schemes across this South Asian country.
Since 2000, India has been responsible for more than 10% of the increase in global energy demand. On a per capita basis, energy demand in India has grown by more than 60%. By 2030, India’s reliance on energy imports is predicted to exceed 53 percent of total energy consumption. An increasing proportion of domestic generation of green energy in India’s energy mix will lessen the country’s reliance on fossil fuels and also lower the country’s import bill.
India, with a population of 1.4 billion and a fast-growing economy, has seen its energy demand increasing rapidly as the country continues to urbanize and the manufacturing sector develops. This growing demand is met through various energy sources, with coal set to remain the largest source of energy supply. India also continues to develop the institutional framework needed to attract the investment required to satisfy this growing energy need.
Electricity security has improved through the creation of one national power system and major investments in clean energy. India is now working on integrating higher shares of variable renewable energy into the energy mix. For the period 2016-2018, the share of solar PV and wind doubled in the electricity generation mix from 4% to 8%. Energy efficiency increases have enabled the avoidance of an additional 15% of energy demand and 300 MtCO2 emissions over the period 2000-2018. India has also been prioritizing access to electricity and clean cooking. Progress in both have been remarkable: 700 million people gained access to electricity since 2000, and 80 million new LPG connections for clean cooking were created.
The scale of India’s renewable energy expansion over the past 15 years is substantial. Total installed capacity grew from 17GW in 2010 to 190 gigawatt by 2025, a compound annual growth rate of nearly 18%. Solar power has dominated this effort, growing almost 30-fold over a decade. Solar energy now accounts for 57% of India’s grid-interactive renewable power. Wind energy has also expanded significantly, reaching 47 gigawatt last year. While solar power has higher installed capacity, the wind sector has developed a more self-sufficient domestic supply chain. India has built a globally competitive wind manufacturing base, meeting 70-80% of its domestic equipment needs and even exporting components to Europe and the United States. When it comes to harnessing the power of wind, India has already moved from being a buyer of technology to a builder of technology. The clearest sign of the country’s early momentum is the progress made on its Paris Agreement commitments. Having pledged to reach 40% non-fossil fuel capacity by 2030, India reached its target in 2021, nine years ahead of schedule. This is a huge achievement for a country of 1.4 billion people, still industrialising at speed, and facing the kind of growth in energy demand that most developed nations have never had to manage.
According to the Ministry of New and Renewable Energy, the installed renewable energy capacity as on June 30, 2026 is 162152.00 megawatt for solar energy and 57443.39 megawatt for wind energy. Including this and other energy sectors, the total renewable energy capacity sums up to 288589.39 megawatts.
India combines the key ingredients that global investors seek — scale, demand, and clear policy direction. As one of the world’s fastest-growing energy markets, India’s renewable energy investments are driven not only by environmental goals but also by the fundamental need to meet rising energy demand sustainably. The government has laid out an ambitious clean energy roadmap. To support this, several initiatives are already in place:
- 1. The National Green Hydrogen Mission, launched in 2023, aims to make India a global hub for hydrogen production. It targets an annual production of 5 MMT of green hydrogen by 2030. The mission has an outlay of over $2053.38 million. to facilitate the production, distribution, utilisation and export of hydrogen globally. It positions India to achieve a $8 billion green hydrogen market by 2030 and $340 billion by 2050. The SIGHT program (Strategic Interventions for Green Hydrogen Transition) offers financial incentives for manufacturing electrolysers and producing green hydrogen.
- 2. The Production Linked Incentive (PLI) scheme has been launched to promote the manufacturing of solar modules and batteries. Under the scheme, the government launched the National Programme on High Efficiency Solar PV Modules to promote solar PV manufacturing in India with an outlay of over $468 million. Under the scheme, 11 companies have been allocated the total domestic solar PV module manufacturing capacity of 39,600 MW.
- 3. To further promote green energy-related manufacturing initiatives, the government is allowing 100% FDI in renewable energy within India under the automatic route, further helping global investors and enterprises. Thanks to a liberalised FDI regime, foreign investment in non-conventional energy sources has been increasing year-on-year, reaching $12.67 Bn as on March 31, 2025.
- 4. India is strengthening its position through key international collaborations, which began with the launch of the International Solar Alliance, in partnership with France. The European Union (EU) remains one of India’s closest partners in this space. The third phase of the India-EU Clean Energy and Climate Partnership is already underway, focusing on enhancing green hydrogen production — a critical component of the clean energy transition. Through the India-Australia Renewable Energy Partnership, the countries will collaborate on a range of renewable energy-related areas, including green hydrogen, solar photovoltaics, capacity building, and more. India is also a founding member of the Global Biofuel Alliance with the US, UAE and Brazil.
This policy stability, combined with a growing domestic energy market and export opportunities, is transforming India into a dependable destination for long-term green energy investment.
India is also dedicating energy projects across the states of Rajasthan and Gujarat. The two western Indian states continue to lead India’s solar expansion initiatives. Through projects like the Bhadla solar park with a capacity of over 2,000 MW, India continues to demonstrate its dedication to renewable energy initiatives. The upcoming Khadva Solar Park, being developed in collaboration with Adani Power, is already operational and expected to be the world’s largest solar energy project after completion. Projects like these not only increase renewable generation but also present clear investment opportunities in associated infrastructure and services. Moreover, the government is developing Ladakh as a strategic renewable energy corridor, which includes setting up 13 GW of renewable power and a 12,000 MWh Battery Energy Storage System (BESS). The project is anticipated to be completed by FY 2029-30. The region’s ambitious solar and transmission projects aim to supply clean power across the northern grid, supported by investments from central and state governments.
In a press conference dated April 8, 2026, Union Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution, Shri Pralhad Joshi stated that India ranks third globally in Renewable Energy Installed Capacity, according to the Renewable Energy Statistics 2026. India achieved a total non-fossil capacity addition of 55.3 GW during FY 2025–26. The Minister also highlighted that in July 2025, India reached its highest-ever renewable energy share in electricity generation. The renewables met 51.5% of the country’s total electricity demand of 203 GW. He also said that a total of 283.46 GW of capacity from non-fossil fuel sources has been installed in the country as on 31.03.2026. Shri Joshi said India’s total power generation during 2025-26 (up to March 2026) reached 1,845.921 BU. The share of non-fossil fuels in total generation reached 29.2% in 2025-26 (538.97 BU). So far, a total of 283.46 GW of capacity from non-fossil fuel sources has been installed in the country as on 31.03.2026. This includes 274.68 GW Renewable Energy (150.26 GW Solar Power, 56.09 GW Wind Power, 11.75 GW Bio Energy, 5.17 GW Small Hydro Power, 51.41 GW Large Hydro Power) and 8.78 GW Nuclear Power capacity.
However, geopolitical shocks, from the Russia-Ukraine conflict and West Asian tensions to Indonesia’s coal export ban, have exposed how fragile global energy supply chains remain. For India, the world’s third-largest energy consumer, these disruptions compound an already acute domestic challenge: the country imports 88 per cent of its crude oil, nearly 48 per cent of its natural gas, and about 26 per cent of its coal, with over 93 per cent of its primary energy supply still met by fossil fuels. As India pursues its goal of energy independence, this issue briefly assesses how secure the country’s coal, oil, and gas supply chains truly are, using a three-pillar framework of accessibility, reliability, and affordability. Accessibility is threatened by supply-chain concentration in geopolitically volatile regions such as Russia and the Middle East, and exposure to logistical chokepoints. Reliability is compromised by the deteriorating quality of domestic coal and the lack of strategic reserves for oil and gas. Affordability is affected by rising domestic extraction costs and global price volatility, which significantly increase India’s import bill and fiscal deficit. The average gross calorific value (GCV) of domestic non-coking coal fell from about 4,480 kcal/kg in 2014-15 to 4,150 kcal/kg in 2023-24, reflecting growing dependence on shallow, high-ash seams. Over the same period, the stripping ratio rose from 2.23 to 2.93. India’s coal accessibility challenge is not one of reserve scarcity but of quality mismatch, allocation constraints, and concentrated external dependence. Over 87 per cent of India’s crude oil consumption is met through imports, up from 70 per cent in the early 2000s. Output from mature basins such as Mumbai High and Assam is in natural decline. India’s post-2022 shift to Russian crude improved affordability, with cumulative savings of USD 12.6 billion, but the gain depends on the continuation of Western sanctions and available shipping and insurance channels. The Herfindahl-Hirschman Index (HHI) for India’s LNG imports stood at 2,381 in 2024-25, notably higher than the crude oil import HHI of 1,988. Qatar alone accounts for 41 per cent of India’s LNG imports, followed by the US (19 per cent) and the UAE (13 per cent). Despite easing spot prices since the 2022 crisis, price-sensitive sectors remain exposed to volatile global markets. Unlike fossil fuels, renewable energy relies on domestic resources that are not subject to geopolitical blockades. Once capacity is installed, RE sources are perennially accessible and not dependent on continuous fuel imports. However, the transition introduces new vulnerabilities in critical minerals (lithium, cobalt, rare earths) and manufacturing inputs (polysilicon, semiconductors), requiring deliberate diversification.
While India has boldly committed to achieving net zero by 2070, 500 gigawatts (GW) of non-fossil fuel capacity by 2030, and 50% of its energy from renewable sources by the same year, the credibility of these aims is the question. In the initial stage of its shift, India has built renewable energy capacity at a startlingly quick pace, surpassing almost everyone’s expectations. However, reaching energy self-sufficiency in the second phase is more difficult. It necessitates resolving a technological dependency issue that is not apparent from the installation numbers alone.
India’s ability to achieve that will impact not only its climate objectives but also the course of its future economic aspirations.
