Cleantech in India - statistics & facts
The cleantech revolution is well underway in India as the country strives to reduce emissions and meet its ambitious climate goals. Government policies have helped massively boost clean energy deployment, and India is now home to a growing number of innovative startups developing solutions to grow its cleantech ecosystem. The South Asian country now has big ambitions to become a major manufacturing hub for clean technologies. Achieving this will bring numerous challenges, but also considerable economic opportunities.
Electric vehicle sales are also booming, having reached a record high of 1.4 million units in 2023. The country’s electric mobility push has been fueled by sales of two- and three-wheeler vehicles. The number of battery-powered rickshaws, the most intrinsically Indian form of transportation, have grown sixfold since 2020 to more than half a million.
India has the potential to be a major player in the cleantech revolution, and is developing strategies to enhance its competitiveness. But while it is rapidly building its capacity, India will have its work cut out to challenge China’s reign as the world’s cleantech leader.
Cleantech deployment is booming
Between 2010 and 2023, the country’s renewable energy capacity more than tripled to a high of 176 gigawatts (GW), giving it the fourth-largest renewable capacity worldwide. In the latter year, renewables accounted for around 20 percent of the country's power mix. Wind and solar have played key roles in renewables deployment. India’s solar energy capacity, in particular, has seen staggering growth, rising almost 20-fold since 2014 to 73 GW.Electric vehicle sales are also booming, having reached a record high of 1.4 million units in 2023. The country’s electric mobility push has been fueled by sales of two- and three-wheeler vehicles. The number of battery-powered rickshaws, the most intrinsically Indian form of transportation, have grown sixfold since 2020 to more than half a million.
Boosting cleantech manufacturing
India, like other key cleantech nations, is heavily reliant on China for imports of crucial components. To address this, India’s government has introduced a range of initiatives, such as ‘Make in India’, to support and catalyze domestic manufacturing of clean technologies and reduce import dependency. A key area of focus is boosting India’s solar PV manufacturing. In the first half of 2024, India added more than 11 GW of solar PV module manufacturing capacity, bringing the total to 77 GW. India now aims to reach 110 GW of solar module manufacturing capacity by 2025-2026, thereby overtaking Vietnam to become the world's second-largest solar PV manufacturer. India is also aiming to scale-up EV battery manufacturing, as well as producing green hydrogen through domestic electrolyzer manufacturing. The growth in manufacturing is set to not only help meet domestic demand, but also make India a more attractive place for country’s wishing to diversify cleantech supply chains away from China.Cleantech investment
India was among the 10 largest markets for clean energy transition spending in 2023, with 31 billion U.S. dollars spent on areas such as electrified transportation, renewable energy, and clean industry. There is also considerable investment forthcoming for domestic clean energy technology innovation and manufacturing. As of 2023, some 15 billion U.S. dollars were in the pipeline for solar PV module manufacturing, and 70 billion U.S. dollars for grid-scale renewable generation. India also ranks among the leading destinations for climate tech funding, having attracted 4.5 billion U.S. dollars in 2023 in the private market venture space. In terms of VC investment, India attracted some 1.3 billion U.S. dollars in 2023, representing a fourfold increase compared to 2018.India has the potential to be a major player in the cleantech revolution, and is developing strategies to enhance its competitiveness. But while it is rapidly building its capacity, India will have its work cut out to challenge China’s reign as the world’s cleantech leader.
