India has experienced significant economic growth in the past few decades, largely fuelled by fossil fuels, making it the world’s third largest carbon-emitter. To combat this carbon emission problem, the Indian government has set ambitious renewable energy targets, aiming to achieve 500 gigawatts (GW) of non-fossil fuel capacity by 2030, with 280 GW from solar energy and 140 GW from wind energy. As a global leader, India ranks fourth in renewable energy capacity and has witnessed a remarkable 36.5% compound annual growth rate (CAGR) in solar power over the past decade.
The transition to green energy continues to be a top priority for the government, both in terms of bandwidth and allocation of government resources. The country is investing in green hydrogen production, positioning itself as a global leader in this emerging sector, aligning with its commitment to achieving net-zero emissions by 2070. To support these efforts, the Indian government has introduced various policies and financial instruments, such as green bonds, green deposits, and mandatory ESG disclosures for top firms. The renewable energy sector has become a significant source of employment, creating over a million jobs in 2023, including nearly half a million in hydropower. Furthermore, India has been proactive in meeting its commitments under the Paris Agreement, being the first among G20 nations to do so.
In a major push for its flagship rooftop solar programme announced last year, the government has increased the budget for the Pradhan Mantri Surya Ghar Muft Bijli Yojana by 80% to ₹20,000 crore for FY26. The government plans to take rooftop solar installations to 10 million households by FY27 from the current 800,000. The scheme, launched in February 2024, aims to enable 10 million households to generate their own electricity with an outlay of ₹75,021 crore.
The Indian government is prioritizing support for clean technologies to enhance domestic value addition. The initiative aims to develop an ecosystem for solar cells, electric vehicle batteries, motors and controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries. The nation has also been discussing building a resilient clean energy supply chain, and an efficient battery storage system forms the core of this to facilitate cross-border electricity trade.
Additionally, boasting the world’s largest agricultural sector, India is uniquely positioned to lead the development of biofuels. The nation’s vast and diverse agricultural lands, coupled with its rich agricultural heritage, create an ideal environment for converting biofuel feedstocks like sugarcane and maize into sustainable energy sources. With approximately 500 million tonnes of biomass generated annually, the government aims to triple sustainable biofuel production by 2030. This rapid scale-up can be achieved by deploying multiple Sustainable Aviation Fuel (SAF) pathways that leverage locally available renewable feedstocks and adopting hub-and-spoke models to improve economies of scale. Producing biofuels not only provides farmers and the entire supply chain with additional sources of income but also fosters job creation, benefiting local communities.
Amidst the global community’s struggle with the escalating impacts of climate change, India is emerging as a key player in shaping a sustainable future.
Global leaders have lauded India’s leadership in renewable energy and its ambitious targets as a beacon of hope, especially as other major economies face uncertainties in their climate commitments. Speaking at Davos 2025, Dr. Fatih Birol, Executive Director of the International Energy Agency (IEA), praised India’s leadership in renewable energy investments, emphasizing the country’s pivotal role in the global clean energy transition. Birol noted that clean energy investments in India had surged by 40% in 2024, positioning the country among the global leaders in renewable energy.
India’s ambitious goal of achieving 500 gigawatts (GW) of renewable energy capacity by 2030 is both “achievable” and transformative. With renewable energy costs in India now ranging between ₹2 and 3 per kilowatt-hour, solar and wind power are already more economical than many fossil fuel alternatives.
However, reaching this goal will require significant investment and innovation, particularly in modernizing energy grids to manage the increased share of renewables. The challenge lies more in upgrading grids to integrate renewables effectively than in financial competition with fossil fuels. Energy storage solutions and digital grid management systems are crucial to ensuring that renewable energy can meet industrial and base load requirements.
Beyond its environmental contributions, India’s renewable energy sector is also making strides in economic empowerment, particularly for women. India’s renewable energy sector has become a significant source of employment. As of 2023, the sector employed over 1.02 million people, with hydropower alone accounting for approximately 453,000 jobs. The solar and wind energy sectors have also seen substantial growth, adding 52,700 new jobs in project development roles in the financial year 2022. This represents a 47% increase from the previous year. Hydropower stands as the largest employer within the sector. As per the Economic Survey 2025, the sector employed an estimated 1.02 million people in 2023. The sector is expected to create even more jobs in the coming years, with estimates suggesting that it could provide up to 3.5 crore (35 million) jobs by 2030.
India’s renewable energy drive is not just about reducing carbon emissions; it’s about transforming lives. These initiatives double incomes and uplift local communities, inspiring aspirations as children move from public to private schools and envision brighter futures in urban centres. While no place on earth has fully achieved this yet, India has a legitimate chance to make this energy transition about lives changed, not just gigawatts.
In conclusion, India is making significant strides in its energy transition towards a sustainable and energy-efficient future. Government-led initiatives, such as the PM Surya Ghar Yojana and expanded biofuel blending, highlight the importance of policy-driven efforts in adopting renewable energy. By harnessing its solar, biofuel and hydro potential and embracing green technologies, India stands on the brink of transformative change in the global renewable energy landscape.
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