India’s progress in renewable energy showcases a blend of a purposeful approach and a sustained focus on planning. The shift is not just about producing clean power; it represents a vital step towards long-term self-reliance. Being one of the most rapidly growing economies and needing new sources of energy, India’s leadership in renewables is shaping global perceptions of the country as both responsible and economically forward-thinking. The commitment to ‘powering a cleaner future, sustainably and equitably’ is already shaping a new era for the nation.
Strategic Policy: Underpinning Self-Reliance and Green Growth
India’s renewable energy transformation is no coincidence—it’s the result of bold targets and well-executed plans. The government provides direction by setting milestones, such as a target of 500 GWof non-fossil fuel-based power generation capacity by 2030. Initiatives such as the National Solar Mission, the Production Linked Incentives (PLI), the aspirations outlined in the National Green Hydrogen Mission, and the forthcoming Green Hydrogen Policy are essential for transforming India into a global renewable energy hub. Notably, the National Solar Mission has helped propel India into the ranks of the world’s top five solar energy producers. The aim of the PLI schemes is to create a dependent integrated domestic manufacturing value chain for advanced battery storage and high-efficiency solar modules, thus enabling lower imports and increased energy security. India has an installed renewable energy capacity (including large hydro) of around 232 GW as of early 2025, which is expected to increase over the next decade and is threefold from the past decade. These policies pave the way for incoming foreign investment, increase energy security, decrease trade deficits on fossil fuel imports and widen prospects of green technology exports.
Economic Diversification and the Growth of a Skilled Job Market
Leadership in the renewable energy sphere is a potent catalyst for diversifying India’s economic foundations. The expanding solar, wind, biomass and emerging green hydrogen sectors are creating a substantial wave of employment across manufacturing, installation, operations, maintenance and R&D. According to the International Renewable Energy Agency (IRENA), India’s renewable energy sector employed over sixteen million people in 2023, a figure projected to expand significantly by 2030. This job creation is particularly impactful in rural and semi-urban areas, offering sustainable livelihoods, fostering skill development and empowering local communities. Initiatives focusing on upskilling the workforce are crucial, ensuring human capital meets the demands of this technologically advancing sector. Bringing green jobs closer to home is helping reduce the need for outward migration and encouraging regional stability. This widespread employment generation helps reduce urban migration pressures and promotes balanced regional economic development.
Catalysing Next-Generation Infrastructure and Encouraging Indigenous Innovation
The nationwide deployment of large-scale renewable energy projects necessitates ambitious infrastructural undertakings. This includes the development of expansive solar parks, resilient transmission networks and the critical deployment of advanced energy storage solutions to ensure grid stability. India’s leadership is visibly investing in modernising its national grid, implementing smart meters, and expanding its EV charging infrastructure. A landmark initiative is the Green Energy Corridors project, designed to integrate vast renewable power seamlessly into the national grid, thereby catalysing development in remote regions. Furthermore, there is a significant push towards innovation in energy storage, evidenced by declining tariffs in Battery Energy Storage System (BESS) tenders and exploration of other solutions like pumped hydro. This infrastructural push, coupled with a growing R&D ecosystem, stimulates growth in construction, manufacturing and allied service sectors, fostering a cycle of innovation and sustainable progress. Such initiatives not only improve grid resilience but also unlock new economic opportunities across sectors.
Private Sector Dynamism and a Thriving Startup Ecosystem
India’s enabling policy environment and long-term commitment to renewables have cultivated fertile ground for private enterprises and innovative startups. The scale of India’s renewable ambitions presents an attractive market, drawing significant domestic and international private capital. This capital inflow is fueling cutting-edge innovations, making India a hub for next-generation renewable technologies. From pioneers in advanced solar panel technology to developers of AI-driven grid management platforms, a new generation of companies is flourishing. These entities are contributing massively to domestic capacity addition and are attracting substantial foreign direct investment (FDI). The renewable energy sector, for instance, attracted nearly 8% of India’s total FDI inflows in FY25, a significant leap from approximately 1% in FY21, with FDI in the first three quarters of FY25 reaching USD 3.4 billion. This vibrant ecosystem, supported by venture capital, is a testament to the nation’s entrepreneurial spirit and its potential to become a hub for green technology innovation.
Elevating Global Stature and Wielding Green Diplomacy
India’s proactive stance and tangible achievements in renewable energy significantly enhance its stature on the global stage. Its visionary role in co-founding the International Solar Alliance (ISA) positions it as a pivotal leader in fostering solar energy cooperation worldwide, particularly among developing nations. Its leadership extends beyond borders, influencing international energy policy and climate action through strategic diplomacy. The ISA aims to mobilise over USD 1 trillion in solar investments by 2030. India’s leadership also extends to active participation in global platforms such as the G20 and COP, where it champions climate justice, technology transfer, and affordable financing for clean energy transitions. This engagement in green diplomacy strengthens India’s geopolitical leverage and promotes collaborative solutions for shared global challenges, attracting vital international climate finance.
Forging Long-Term Economic Resilience and Holistic Sustainability
The shift toward domestic renewable energy reduces exposure to international fuel markets, promoting both sustainability and economic sovereignty. This stepwise shift toward renewable energies is vital for instilling stability in the macroeconomics of India for years to come. An increase in renewable sources of energy allows a country’s economy to safeguard itself from the rampant price fluctuations in fossil fuels at a global level. This process improves energy independence, resulting in a more stable balance of payments. Furthermore, the shift to clean sources of energy supports sustainable development by fostering a healthier environment and driving economic growth. In addition to these co-benefits, there are other factors that significantly enhance public health spending, such as improved air quality and reduced healthcare costs. To meetclimate targets and create environmentally self-sufficient resources, it is imperative for India to continually evolve its renewable infrastructure targets with reliability and ambition.
All in all, India’s role in advancing renewables is solely focused on strengthening the economy, rather than portraying itself as an eco-warrior. Although challenges remain, the direction of current initiatives is positive. India is at the forefront of a clean energy revolution that promises to transform its industries, enhance its international reputation, create new employment opportunities and modernise public operations. Developing a comprehensive clean energy policy nationwide will empower India to take a leading role in the global energy landscape. Sustaining these commitments will propel India to the top of the clean energy dominators’ chart.
(The author, Narayan Kumar, is the CEO of Kshema Power.)
