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India aims for 500 GW non-fossil fuel capacity by 2030 and net-zero emissions by 2070. Solar and wind energy sectors lead, with significant FDI and start-up activity.
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Authored by Mr. Abani Jha, CFO, Saatvik Green Energy Ltd: Global warming is an issue that is challenging the entire world. Global temperatures have been on a constant upward curve. The average surface temperature is about 1.55 ± 0.13 °C above the pre-industrial average (1850-1900). In particular, the past decade has been the warmest in recent times.
While this has caused an alarming situation worldwide, it has necessitated global emissions to reach net zero at the earliest possible time to limit global warming to well below 2°C, or above pre-industrial levels. While nations are constantly in a huddle to develop strategies to achieve that, a common consensus has emerged—this can be achieved only and only through a complete transition to clean energy.
More specific to India, there is already a lot of activity in this space, especially in India’s vibrant and burgeoning start-up ecosystem. This surge in green energy is pushed by a green vision and ambitious targets set up by the government, growing investor interest, and a constantly growing set of young entrepreneurs who are alive to the problems India and the world may face if we do not go green as far as energy is concerned. This new vigor among the young entrepreneurs is a good sign for India in its quest to meet its climate commitments, enhance energy security, and achieve sustainable economic growth.
The opportunity for India’s green energy start-ups is pretty huge considering that India has set ambitious, but achievable targets of achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070, apart from aiming to reduce greenhouse gas emissions by 45 per cent by 2030. Understandably, this lure has attracted not just ambitious start-ups but also large corporations who have jumped into the fray.
Currently, according to a report from Tracxn, a market intelligence platform, there were 297 active Renewable Energy Tech companies in India as of May 2025. The other encouraging development in this area has been Foreign Direct Investment (FDI), particularly in green start-ups, which has given this sector a huge kick start. This has been further boosted by the government allowing 100 per cent FDI in the renewable energy sector with no requirement of prior approval. According to Ministry of Commerce and Industry estimates, FDI in this sector grew 50 per cent year-on-year in FY 2023-24. Till Q3 of FY 2024-25, India’s renewable energy sector attracted FDI of $3.4 billion which is equivalent to the total FDI inflows for the entire FY 2024. Solar As the Beacon of Boundless Possibility
India’s march towards a green energy future is led particularly by the solar energy sector which has not only attracted a large number of start-up entrepreneurs, but also a significant amount of FDI. In 2025, India attracted $2.7 billion in FDI in this sector. It also added the most to India’s overall renewable energy capacity by adding 23.83 GW in FY 2024–25. The total installed solar capacity now stands at 105.65 GW. With 60 per cent of India’s 2025 renewable tenders focusing on solar, with a general push support from FDI, there is a newfound enthusiasm in this sector. By 2030, India has set a target to achieve 280 GW of solar power. This will go a long way in achieving India’s target of 500 GW of renewable energy by that year.
Wind: The Tempest of Transformation
In the wind energy sector, India has already established itself as a global leader and currently ranks 4th worldwide in total installed wind capacity. In FY 2024-25, India added 4.15 GW of new wind capacity and as of March 31, 2025, India’s total cumulative installed wind capacity stands at approximately 50.04 GW. Innovators are forging compact turbine designs, shrinking land footprints by 35 per cent and weaving wind into urban and rural areas. This has led to the creation of 85,000 jobs in India’s wind sector in FY25. Wind energy complements solar, which is available during the day, to provide Round-the-Clock (RTC) clean energy. Diurnally, wind power peaks primarily at night and early morning, as against the daytime availability of solar to not only balance RTC energy availability but also reducing the dependence on thermal power for non-peak hours.
Green Hydrogen
Green hydrogen is unlocking a new frontier, decarbonizing industries that are challenging to electrify directly. This includes steel, fertilizers, petroleum refining and long-haul transport. Green hydrogen, which is produced domestically, offers an effective alternative to fossil fuels and strengthens India’s energy security. In 2025, India pulled in $700 million in FDI to fuel its 5-million-tonne production ambition by 2030. India’s green hydrogen projects, anchored by 20 GW of renewable capacity, attracts global investors with the allure of a decarbonized dawn. This is a lifeline forged by FDI and startups to redeem a carbon-choked world. The National Green Hydrogen Mission (NGHM) has set a target of a production capacity of 5 Million Metric Tonnes (MMT) of green hydrogen per annum by 2030, with an associated renewable energy capacity addition of about 125 GW. This is expected to lead to an abatement of nearly 50 MMT of annual greenhouse gas emissions. Additionally, green hydrogen also has the advantage that unlike solar and wind energy, it can be stored for long-duration.
Financing
The clean energy revolution runs on innovative financing. In 2025, India’s green bond market increased to $18 billion, with 75 per cent powering solar and wind. Innovators are crafting decentralized investment platforms, empowering citizens to fund renewable projects with returns 12 per cent above traditional bonds.
India’s Production Linked Incentive scheme unleashed 52 GW of domestic solar and wind manufacturing in 2025, breaking the chains of import reliance. The Asian Development Bank’s $1.3 billion infusion into India’s renewable infrastructure in 2025 is a testament to unshakeable global faith on India’s capabilities in this field.
A Vision for the Future
India has shown great preparedness for the energy challenges of the future by developing a robust renewable energy ecosystem and both political and entrepreneurial will to not only support this but also take it forward. It has shown a firm commitment to decarbonizing its economy and enhancing energy security. With the new initiatives in green hydrogen, solar and wind energy, India has already positioned itself as a global hub for renewables. What is left is to address the remaining challenges of long-term financing, grid integration, and building a robust infrastructure for this march. With a proactive government, active private investment and fresh breakthroughs in technology, India’s ambitious targets will not only be achievable but will set examples for other nations to follow.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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