India is accelerating its transition toward a globally competitive clean energy economy, but achieving its climate ambitions will require far more than expanding renewable power capacity.
According to the Institute for Energy Economics and Financial Analysis (IEEFA) report The Green Industrial Policy India Actually Needs, the country must develop an integrated green industrial ecosystem spanning renewable energy manufacturing, battery storage, green hydrogen, critical minerals, advanced technologies, resilient supply chains, skilled workforce development, sustainable finance, and innovation to support long-term economic growth and energy security.
India has committed to achieving net zero emissions by 2070, installing 500 GW of non-fossil fuel electricity capacity by 2030, and producing 5 million metric tonnes of green hydrogen annually by 2030. IEEFA says these targets require coordinated industrial policy alongside renewable energy expansion, enabling domestic manufacturing and globally competitive clean technology industries rather than relying primarily on subsidies.
Solar energy remains the cornerstone of India’s green industrial strategy. The country has already installed around 162 GW of solar capacity, representing approximately 29 percent of its non-fossil electricity capacity. India plans to increase solar capacity to approximately 292 GW by 2030, creating substantial demand for manufacturing, infrastructure, and investment. Government initiatives, including the Production Linked Incentive (PLI) scheme, domestic manufacturing requirements, and the Approved List of Models and Manufacturers (ALMM), have helped expand domestic solar module manufacturing capacity to around 200 GW. However, upstream manufacturing remains underdeveloped, with effective domestic solar cell manufacturing capacity estimated at only 16 GW to 18 GW, while polysilicon and wafer production continues to depend heavily on imports.
The report identifies battery manufacturing, energy storage systems, battery recycling, and mineral processing as essential to integrating higher levels of renewable energy into the grid. India still faces challenges due to reliance on imported lithium-ion supply chains, limited domestic mineral processing capabilities, and technology gaps. Expanding local battery manufacturing and recycling will be critical for renewable energy integration and electric mobility growth.
Green hydrogen represents another strategic growth opportunity. India’s target of producing 5 million metric tonnes of green hydrogen annually by 2030 is expected to support decarbonization across steel, fertilizers, chemicals, refineries, and heavy transportation. Achieving this goal will require large investments in renewable electricity, electrolyzer manufacturing, hydrogen storage, transport infrastructure, and industrial applications.
Financing remains one of the biggest hurdles to India’s clean energy transition. IEEFA estimates the country will require approximately US$68 billion in annual investment to achieve its 500 GW non-fossil electricity capacity target by 2030. The investment requirement extends beyond renewable power generation to include transmission infrastructure, battery storage, hydrogen facilities, manufacturing plants, and grid modernization. The report stresses that lower financing costs, stronger green finance mechanisms, and greater access to long-term capital will be essential to attract domestic and international investors.
India’s private sector is already making significant investments across the clean energy value chain. Reliance Industries has announced plans to invest approximately US$10 billion in its New Energy business, including the Jamnagar Green Energy Giga Complex for manufacturing solar photovoltaic modules, advanced battery cells, electrolyzers, fuel cells, and green hydrogen technologies. Adani Group is developing the 30 GW Khavda Renewable Energy Park in Gujarat while expanding investments in renewable generation, manufacturing, battery storage, transmission, and green hydrogen. Tata Power continues investing in utility-scale renewable energy, rooftop solar, electric vehicle charging infrastructure, transmission, and domestic solar manufacturing.
NTPC aims to build 60 GW of renewable energy capacity by 2032, supported by investments in solar, wind, pumped hydro storage, battery energy storage systems, and green hydrogen. ReNew Energy Global is expanding utility-scale renewable projects alongside battery storage and green hydrogen initiatives. JSW Energy has set a target of 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, while ACME Group continues investing in utility-scale solar, battery storage, green hydrogen, and green ammonia projects. Waaree Energies is strengthening India’s solar manufacturing ecosystem through continued expansion of photovoltaic module production and advanced manufacturing technologies.
IEEFA analysts Labanya Prakash Jena, Prasad Ashok Thakur, and Saurabh Trivedi conclude that India’s long-term competitiveness will depend on building globally competitive clean technology industries supported by manufacturing expansion, innovation, infrastructure investment, and climate finance. Supported by research from Vibhuti Garg, Shantanu Srivastava, Tanya Rana, Saloni Sachdeva Michael, and Prabhakar Sharma, the report argues that integrating industrial policy with renewable energy deployment will be essential for strengthening domestic supply chains, reducing import dependence, and positioning India as a global clean energy manufacturing hub. With sustained public policy support and private investment, India is well positioned to achieve its 500 GW non-fossil electricity target by 2030, produce 5 million metric tonnes of green hydrogen annually, and advance toward its 2070 net zero commitment.
SHAFANA FAZAL
