The world’s energy landscape is shifting rapidly, and India is emerging as a major player. What started as a national effort to reduce reliance on carbon has grown into one of the biggest clean-energy transformations globally. As India presses ahead with its move towards a sustainable future, its renewable energy sector faces a crucial moment. In 2024 alone, the country added over 28 GW of solar and wind capacity, the third- highest globally, reaffirming its position as a leader in the clean energy transition.
India has already achieved 50% of its installed electricity capacity from non-fossil fuel sources, reaching this milestone nearly five years ahead of schedule[1]. This transformation is driven by a clear policy vision, strong public–private partnerships, and the belief that economic growth and environmental stewardship can advance in tandem. Renewable energy is no longer viewed merely as a climate obligation but as a growth engine, one which is creating jobs, attracting global investment, and strengthening India’s energy security.
India's renewable energy targets 2030 are anchored in innovation and growing investor confidence. India is ready not only to take part in the global clean-energy transition but also to lead it. Here are five reasons India is poised to spearhead the global renewable energy revolution.
Ambitious targets and early achievements
Having already reached 217.62 GW of non-fossil capacity[2] and achieved 50% of its installed generation capacity from clean sources nearly five years ahead of schedule, India is now advancing towards its 500 GW renewable energy target for 2030 — where ambition, policy vision, and economic rationale converge[3].
India's ambition extends beyond just capacity numbers. It has committed to drastically reducing its carbon footprint by decreasing the emissions intensity of its GDP by 45% by 2030 (compared to 2005 levels)[4]. These near-term milestones are critical steps toward the long-term commitment: achieving net-zero emissions by 2070[5]. This roadmap for long-term decarbonisation offers a predictable, stable policy regime for global investors and, through its large and consistent capacity additions, solidifies India’s position as a responsible, modern energy powerhouse.
Strong policy push
India’s ambition to establish itself as a renewable energy leader is driven by a set of stable,conducive industrial policies. Solar and wind energy have been the mainstay of India's energy transition, with installed solar capacity increasing 39-fold since 2014 and wind capacity doubling. Government schemes for solar energy in India, such as the PM Surya Ghar Muft Bijli Yojana, PM-KUSUM, the Solar Parks Scheme, and the National Wind-Solar Hybrid Policy, are expanding access and accelerating deployment across states. The PM Surya Ghar scheme aims to provide free electricity from rooftop solar to 10 million households.[6] India added about 4.15 GW of wind energy in FY 24-25, bringing the total to 53 GW. To add unconventional sources of wind energy, the Union Government provides viability gap funding, totalling over ₹7,000 crore. With increased renewable energy, intermittency is a key concern for grid security. To adequately address this, India is providing a policy thrust on battery energy storage systems through Production Linked Incentive for cell manufacturing and Viability Gap Funding for grid-scale deployment. These government-backed initiatives aim to make renewable energy affordable and accessible while encouraging domestic manufacturing under the Make in India program.
Bodies such as the Solar Energy Corporation of India (SECI) and the Indian Renewable Energy Development Agency (IREDA) de-risk projects and channel vital financial resources, transforming ambition into reality. State-level renewable purchase obligations (RPOs) and open-access reforms have enhanced market participation and empowered large consumers to select their power suppliers. Due to concerted efforts, India’s renewable energy framework ranks among the most comprehensive in the world, balancing ambition with effective implementation.
FDI, incentives and global confidence
India allows 100% foreign direct investment (FDI) in the renewable energy sector under the automatic route.[7] The sector has attracted $23.04 billion in FDI from April 2000 to June 2025[8], underscoring the strong investor confidence in India's renewable energy transition.
The government has further bolstered the sector through production-linked incentives (PLI), viability gap funding (VGF), and accelerated depreciation benefits. These measures have attracted major sovereign wealth funds, global utility companies, and climate-focused investors into India’s solar, wind, and hybrid markets. Transparent bidding, stable returns, and expanding grid infrastructure continue to sustain this momentum. As the world seeks scalable, investable clean-energy models, India demonstrates how policy vision and profitability can align in the renewable economy.
Green Hydrogen
India's net-zero ambitions extend beyond just adopting renewables; they would be incomplete without the country becoming a global centre for the production, utilisation, and export of green hydrogen.
To realise this vision, the government launched the National Green Hydrogen Mission (NGHM) with an initial outlay of ₹19,744 crore[9] The mission aims for an ambitious annual production of at least 5 million metric tonnes (MMT) of green hydrogen by 2030, supported by approximately 125 GW of associated renewable energy capacity[10] India has seen robust price discovery, indicating strong investor confidence and a competitive ecosystem, with SECI's first-ever auction for the procurement of green ammonia achieving a record low price of ₹55.75/kg. The discovered price translates to approximately USD 641/MT, a substantial drop from the previously discovered price of ₹100.28/kg (USD 1,153/MT) in the H2Global auction in 2024. This marks a watershed moment in India's green hydrogen journey and reinforces the country’s vision of becoming a global hub for green hydrogen production. The auction witnessed intense competition, reflecting the strong investor and developer confidence in India’s green energy transition framework.[11]
The NGHM's primary aim is decarbonization of hard-to-abate sectors such as refining, fertilisers, and steel by implementing blending in a phased manner. Moreover, India is committed to developing a competitive, self-reliant value chain through the creation of Green Hydrogen Hubs and targeted R&D under the SHIP (Strategic Hydrogen Innovation Partnership) framework[12].
This critical initiative aligns India with global decarbonisation efforts and positions it as a reliable partner in the rapidly evolving hydrogen economy.
Scale, low-cost execution, and domestic manufacturing
India's potential for global leadership in renewable energy is rooted in its ability to execute projects at a massive scale and achieve some of the world's lowest costs for solar and wind energy. The country has leveraged its competitive landscape and innovative tender design to achieve low tariffs for solar plus hybrid battery, reaching as low as ₹2.73 kilowatt hour, making clean energy an economically rational choice for new power generation[13]
Importantly, this scale is supported by a rapidly expanding domestic supply chain. The Production Linked Incentive (PLI) scheme for High-Efficiency Solar PV Modules is expected to establish a manufacturing capacity of 48 GW of fully integrated solar PV modules. Such policies have seen positive response from the industry, with investment commitment amounting to ₹48,120 crore[14]. This push for 'Make in India' aims to reduce dependence on imports, create more jobs, and strengthen India's role as a global manufacturing centre for renewable technologies, shifting the country from being a consumer to a significant manufacturer in the global clean energy supply chain.
Conclusion
India's renewable energy journey is no longer just a national effort; it has become a global blueprint for climate action and economic growth. The convergence of ambitious targets, strong policy frameworks, unwavering international confidence, progress in green hydrogen, and the vital ability to deliver scale and manufacturing makes India a distinctive powerhouse.
As technology costs decrease and global capital increasingly seeks climate-compatible investments, India emerges as a model for balancing growth with responsibility. Over the next decade, India will not only meet its own targets but also export its expertise, technology, and clean energy solutions worldwide. By leading this transformation, India demonstrates that the path to a net-zero future can be both inclusive and economically transformative.
This listicle is written by Deepankar Phalnikar
