Energy & Environment
In 2025, India is at a crucial point in its environmental journey. The country aims for net-zero emissions by 2070 and targets 500 GW of non-fossil fuel capacity by 2030, with renewables already contributing over 43% of total installed capacity. However, India remains the world’s third-largest CO₂ emitter, making decarbonization a key policy priority. Rapid urbanization and industrial growth continue to strain natural resources and air quality.
/ Overview of India's Energy & Environment Sector
Water scarcity is a critical issue, with nearly 600 million Indians facing high-to-extreme water stress and 21 major cities projected to run out of groundwater by 2030. The government is investing in the Jal Jeevan Mission and promoting smart water management, including water recycling and desalination. Air pollution is also severe, particularly in northern cities like Delhi, where PM2.5 levels exceeded the WHO limit by over 15 times in winter 2024–25. Addressing air and water pollution is a priority through stricter emission norms and expanded monitoring and filtration systems.
365.6
Power Capacity (in GW)
$31
Market Size (In bn)
$42.1
FDI (till Jan 2025) in bn
5.8%
Economic Growth Rate
/ Growth Drivers
Renewable Energy Growth India’s renewable capacity hit 201.45 GW in 2024, with a target of 500 GW by 2030, driving demand in solar, wind, and hydro energy sectors.
Water Infrastructure Expansion 12.29 crore rural homes received tap water under the Jal Jeevan Mission by March 2025, boosting need for purification and pipeline systems.
Urban Air Pollution In Jan 2025, 31 cities had ‘Poor’, and 3 cities had ‘Very Poor’ PM2.5 levels, prompting growth in pollution control tech and air quality monitoring.
Climate Finance Surge Global GSS+ debt hit USD 1.1 trillion in 2024, with India aligned to attract climate-resilient investments and sustainable infrastructure funding.
/ Key Investment Opportunities
Renewable energy Industry
∕ Solar Module Manufacturing: Domestic capacity is expected to exceed 100 GW by 2026, driving investment in upstream components like wafers and cells.
∕ Green Hydrogen: India aims for 5 MMT of annual production by 2030, with USD 2.5B investment under the National Hydrogen Mission.
∕ Offshore Wind: A 30 GW capacity target by 2030, starting with 4 GW in Tamil Nadu and Gujarat by 2027
∕ EV Charging + Solar: Over 5,000 solar-powered EV stations planned by 2026 to support India’s 30% EV target by 2030.
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Sustainability
∕ Green Buildings & Sustainable Construction: India’s green building market is expected to reach USD 35–50 billion by 2025
∕ Waste-to-Energy Projects: India generates 150,000+ tons of municipal solid waste daily; the sector is projected to attract USD 1.5 billion+
∕ Electric Mobility Infrastructure: India’s EV charging market is projected to grow at a 40% CAGR, reaching USD 5.5 billion by 2030, driven by strong government and private sector support.
∕ Carbon Credit & Trading Ecosystem: India’s carbon credit market is expected to reach USD 10 billion by 2030
∕ Sustainable Water Management Technologies: Driven by rising demand, India’s smart water tech and treatment market is set to reach USD 4.2 billion by 2025, with water needs expected to hit 820 billion cubic meters by 2030.
Oil & Gas Industry
∕ City Gas Distribution (CGD) Expansion: India aims to cover 96% of population and 86% of area under CGD by 2026
∕ Petrochemicals and Downstream: Demand for petrochemicals to reach USD 300 billion by 2025; Reliance and Indian Oil expanding capacity with multi-billion-dollar investments.
∕ Strategic Oil Reserves: India is expanding its strategic petroleum reserves to 83 MMT by 2025 to strengthen energy security—offers EPC and tech investment avenues.
∕ Natural Gas Infrastructure: The government is targeting 15% gas share in energy mix by 2030 (up from ~6%); investments in pipelines like Jagdishpur-Haldia and LNG terminals exceed USD 60B.
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