Advantage India
Robust
Demand
*Ministry of New and Renewable Energy targets 500 GW non-fossil-based electricity generation by 2030, as per the Prime Minister's COP26 announcement, with an added installation of 13.5 GW renewable energy capacity in 2023, corresponding to an investment of around Rs. 74,000 crores (US$ 8.90 billion).
*Power generation from renewable energy sources (excluding large hydro) stood at 310.59 billion units (BU) in FY26, increasing from 255.00 BU in FY25, reflecting a strong year-on-year growth of 21.79%.
Increasing
Investments
*The Union Budget 2026-27 significantly strengthens India’s renewable energy push, with the Ministry of New and Renewable Energy (MNRE) allocation reaching Rs. 44,614.67 crore (US$ 5.05 billion), reflecting a 40.52% increase over 2025-26 Budget Estimates of Rs. 31,749.38 crore (US$ 3.75 billion).
*Indian conglomerates plan to invest Rs. 67,42,400 crore (US$ 800 billion) in green hydrogen, clean energy, semiconductors, and EVs by 2034.
Policy
Support
*The Ministry of Power has released the Draft National Electricity Policy (NEP) 2026 for stakeholder consultation, aimed at transforming India’s power sector in line with the vision of Viksit Bharat @2047. The policy targets an increase in per capita electricity consumption to 2,000 kWh by 2030 and over 4,000 kWh by 2047, while aligning with India’s climate commitments and net-zero goals. It emphasises large-scale renewable energy integration, deployment of energy storage systems, grid modernisation and improved financial viability of DISCOMs to ensure reliable and affordable power supply.
*The Government of India has approved the Small Hydro Power (SHP) Development Scheme for 2026-31 with an outlay of Rs. 2,584.60 crore (US$ 0.29 billion) to support installation of ~1,500 MW capacity across states
Competitive
Advantage
*As of May 2026, India’s installed renewable energy capacity (excluding large hydro projects) stood at 230.78 GW, reflecting the continued expansion of the country’s clean energy sector.
*Power generation from solar and wind projects are likely to be cost-competitive relative to thermal power generation in India in 2025-30.
*India has officially surpassed Japan to become the world's third-largest solar energy producer. According to data from the International Renewable Energy Agency (IRENA), India generated 1,08,494 GWh of solar power, exceeding Japan's 96,459 GWh.
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