With renewables meeting rising power demand and shaping export competitiveness, India’s clean energy strategy is becoming central to industrial policy.
India’s renewable energy sector saw a major surge in investment momentum last year, with deal values rising more than five-fold to nearly $2 billion, reflecting growing confidence in the country’s clean energy roadmap.
Addressing the CII Annual Business Summit 2026, Union Minister for New and Renewable Energy Pralhad Joshi said India is entering the next phase of its energy transition, which will focus on integrating renewable power generation with storage systems and modern transmission infrastructure. He noted that achieving the country’s 500 GW non-fossil fuel capacity target by 2030 will depend on stronger grid resilience, battery storage deployment, hybrid renewable projects, offshore wind development and round-the-clock clean power solutions.
The minister highlighted that clean energy policy is increasingly shaping industrial competitiveness and global trade participation as climate-linked regulations tighten worldwide. According to estimates from the International Energy Agency, India recorded the fastest renewable energy capacity growth among major economies in 2025 and now ranks as the world’s second-largest solar market and third in overall renewable capacity.
Over the past decade, India’s non-fossil fuel capacity expanded from 81 GW to 288 GW. Solar capacity alone jumped from 2.8 GW to 155 GW, while wind power installations rose to 56.4 GW. Domestic manufacturing capabilities have also strengthened significantly, with solar module production capacity increasing to 172 GW and solar cell capacity reaching 29 GW.
Renewable energy is playing a growing role in meeting rising electricity demand, contributing nearly one-third of India’s record peak demand of 256 GW last month. Despite declining global renewable investments, India continues to attract strong capital inflows supported by policy reforms, manufacturing incentives and tax rationalisation measures.
Joshi added that affordable clean energy will increasingly determine competitiveness across sectors such as steel, automotive, chemicals and textiles, while green hydrogen and renewable-powered industrial systems are expected to drive future export growth.
