March 13 – India’s energy consumption has doubled over the past two decades and is projected to grow by another 25% by 2030. To achieve net-zero carbon emissions by 2070, the government is aggressively replacing fossil fuels with green alternatives.
According to the International Energy Agency, India’s clean energy investments have surged over the past three years, driven by ambitious targets. The launch of the sovereign green bond market in 2023 contributed to a sharp rise in clean energy investments, reaching USD 68 billion in 2023—nearly 40% higher than the 2016-2020 average. Most of these funds have been directed toward low-emission power generation, including solar photovoltaics (PVs).
Harnessing green energy from diverse sources is also a strategy for ensuring inclusive regional development. The Northeastern and Himalayan regions hold significant untapped hydropower potential, and India has doubled its hydropower generation from 73,579 GWh in 2002 to 2,098 GWh in 2023. Expanding hydropower in these regions is expected to generate employment and drive infrastructure development.
India’s renewable energy initiatives extend to the mining sector as well. The country is balancing increased coal mining output with strategic pollution reduction measures, leveraging green mining technologies such as surface miners, biotechnology solutions, dust control systems, and electrostatic precipitators.
Under the National Hydrogen Mission, the government is repurposing phased-out coal mines for green hydrogen production. This approach addresses land and freshwater constraints while creating job opportunities for communities previously dependent on coal mining. The Strategic Interventions for Green Hydrogen Transition (SIGHT) policy provides financial incentives for electrolyser manufacturing and green hydrogen production, with a budget allocation of ₹17,490 crore until 2029-30.
India’s energy policy has evolved to meet the country’s growing demands. Key initiatives include the National Solar Mission, the Green Energy Corridor Scheme, the PM-KUSUM scheme, and the recently launched PM Surya Ghar: Muft Bijli Yojana. This program, backed by an investment of over ₹75,000 crore, aims to provide up to 300 units of free electricity per month to one crore households through rooftop solar panel installations, covering up to 40% of the cost through subsidies.
The country’s push for green energy is also reshaping its employment landscape. India is now the world’s third-largest automotive market, with the electric vehicle (EV) industry projected to grow from USD 3.21 billion in 2022 to USD 113.99 billion by 2029 at a 66.52% CAGR. The Indian EV battery market is also set to expand significantly, from USD 16.77 billion in 2023 to USD 27.70 billion by 2028. The Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) schemes are transforming India into a global hub for auto component manufacturing and exports, with one-fourth of production geared toward international markets.
India’s rapid economic expansion is complemented by a shift toward sustainability. The adoption of EV-driven public transport and the phasing out of fossil fuel-powered buses in multiple cities are key steps toward achieving the objectives of the Lifestyle for the Environment (LiFE) Movement, championed by Prime Minister Narendra Modi. This initiative encourages individuals to actively participate in building a sustainable future.
India’s green mission serves as an exemplary model for developing countries facing the dilemma of choosing between economic growth and environmental sustainability. By fostering green job creation and inclusive policies, India demonstrates that growth and sustainability can go hand in hand. Decoupling economic expansion from environmental degradation remains a challenge, but India’s hydropower, hydrogen, and solar initiatives highlight how well-rounded policies can drive both prosperity and environmental stewardship. As the country continues on this trajectory, it is poised to emerge as a global leader in sustainable development by 2025, offering a blueprint for balancing economic growth with environmental responsibility.