Business Opportunities in India’s Green Tech Market

Posted by Written by Melissa Cyrill Reading Time: 3 minutes

India’s population growth and expanding economy is growing the market scope for green tech solutions. Foreign investors pushing sustainability and ESG solutions addressing resource consumption, carbon emissions, environmental pollution, and waste treatment can tap into a burgeoning market supported by government incentives.

The expansion of green technologies in India, aimed at reducing carbon footprints, presents promising economic prospects. Green technology addresses environmental challenges through solutions like renewable energy systems, pollution control devices, waste management techniques, and water treatment processes. India’s large population and economic growth drive demand for technologies that reduce resource consumption and minimize carbon emissions. Significant investments in solar, wind, and hydropower technologies have occurred over the past decade.

The market’s attractiveness to investors also follows through from the rising global focus on environmental, social, and corporate governance (ESG) parameters as well as the potential for long-term savings through waste reduction and increased efficiency, contributing to a circular economy. As the costs of renewable energy decline due to newer technology-enabled efficiencies, an expected surge in businesses adopting clean energy technologies will boost green tech prospects.

Growing awareness of environmental issues is already resulting in new governing policies and support for industries. Meanwhile, C-suite executives are increasingly ranking risks related to environmental concerns much higher than before, as they impact worker health and productivity.

India’s market for green technology and renewables

According to a report from the Boston Consulting Group (BCG), the green tech sector in India is projected to achieve a market size of US$45-55 billion by 2027. In their 2022 report titled “The Next ‘Digital’: Unlocking a $50 Billion Green Tech Opportunity,” BCG highlights that the growth of green technology is spurred by the increasing adoption of sustainable applications across IoT (Internet of Things), cloud computing, data platforms & analytics, digital twin (digital model of an intended or actual real-world physical product, system, or process), and blockchain. This suggests clear indications of substantial annual business opportunities, with an anticipated annual growth rate of 25-30 percent over the next five years.

Green hydrogen market

Initiatives like the National Green Hydrogen Mission aim to position India as a global leader in green hydrogen production. Goals for 2030 include a green hydrogen production capacity of at least 5 million metric tonnes per year and adding 125 GW of renewable energy capacity. Investments exceeding INR 8 trillion (US$95.95 billion) are expected to generate over 600,000 job opportunities and reduce fossil fuel imports, contributing to a cumulative reduction of nearly 50 million metric tonnes of greenhouse gas emissions annually.

The Bureau of Energy Efficiency (BEE), under the Ministry of Power, is the designated Nodal Authority responsible for accrediting agencies for monitoring, verification, and certification of green hydrogen production projects in India.

Renewables market

In the renewables market, India focuses on increasing the share of renewables in the energy mix, with ambitious targets, including 500 GW of non-fossil fuel-based energy by 2030 under the ‘Panchamrit’ initiative. The country occupies the 4th position globally in total renewable energy installed capacity, and there has been a 396 percent surge in installed non-fossil fuel capacity over the past 8.5 years, reaching an impressive 176.49 GW.

India allows up to 100 percent foreign direct investment (FDI) under the automatic route for renewable energy projects. Investment opportunities in the renewables market cover solar power, wind energy, green hydrogen, energy storage solutions, and electric mobility. India’s solar energy sector is growing rapidly, with 57 approved solar parks. The wind energy market is expanding, targeting 30 GW offshore by 2030.

Energy storage solutions, including battery energy storage systems (BESS), are promoted through government schemes, aiming for 4000 MWh worth BESS projects by 2030-31. The electric vehicle market is gaining momentum, with projections indicating a surge from US$2 billion in 2023 to US$7.09 billion by 2025, and an estimated 10 million annual EV sales by 2030.

Companies invested in India's green economy

Government schemes and policies

schemes supporting renewables sector India


India’s green technology market presents a dynamic and promising investment landscape. As the country continues its journey towards a sustainable future, early investments in innovative and scalable green technologies and the renewables market can provide investors with substantial returns while contributing to India’s environmental goals. However, it is crucial for investors to conduct thorough due diligence, stay informed about market trends, and collaborate with strategic partners to capitalize on the vast opportunities that India presents.

About Us

India Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Readers may write to for more support on doing business in India.

We also maintain offices or have alliance partners assisting foreign investors in Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, and the United States.