NEW DELHI — India could attract ₹360 trillion in cumulative green investments by 2047, creating 48 million full-time jobs and unlocking an annual market worth ₹97.7 trillion, according to a groundbreaking national assessment that reveals the world's most populous nation is positioning itself as a global leader in sustainable economic transformation.

The first-of-its-kind study by the Council on Energy, Environment and Water identifies 36 distinct green value chains across energy transition, circular economy, and bioeconomy sectors that together represent a defining economic opportunity as India pursues its Viksit Bharat vision. The analysis, launched alongside formation of a Green Economy Council chaired by former NITI Aayog chief Amitabh Kant, signals a fundamental reimagining of India's development trajectory at a scale unprecedented among major emerging economies.

Beyond Solar Panels: A Trillion-Dollar Transformation

The green economy opportunity extends far beyond conventional renewable energy projects, encompassing bio-based materials, agroforestry, green construction, sustainable tourism, circular manufacturing, waste-to-value industries and nature-based livelihoods. Each sector could scale into billion-dollar industries over the next two decades while enhancing resource security and environmental sustainability.

Energy transition alone could generate 16.6 million full-time equivalent jobs and attract ₹338 trillion in investments across renewables, storage, distributed energy and clean mobility manufacturing, according to CEEW's analysis. Electric mobility emerges as the single largest employer within the green economy, driving over 57 percent of all energy-transition jobs as India accelerates adoption of battery-powered vehicles.

Bioeconomy and nature-based solutions, anchored primarily in rural and peri-urban landscapes, could create 23 million jobs and unlock ₹370 billion in market value. This represents a transformative opportunity for agricultural communities, with employment spanning chemical-free farming, agroforestry, wetland management, bio-inputs production, and innovative materials like engineered bamboo and advanced biofibers.

Renewable Energy Acceleration Required

India added a record 22 gigawatts of renewable energy capacity in the first half of 2025, marking the highest-ever six-month installation period and demonstrating accelerating momentum toward the nation's 500 gigawatt non-fossil fuel target for 2030. Solar capacity reached 90.76 gigawatts by October 2024, while wind installations totaled 47.3 gigawatts, reflecting significant progress since the launch of ambitious renewable initiatives.

Yet experts emphasize that annual capacity additions must more than double from current levels to meet 2030 targets. India aims for 280 gigawatts of solar and 100 gigawatts of wind by the decade's end, requiring sustained investment flows and policy support to maintain construction momentum across states including Rajasthan, Gujarat, Karnataka, Tamil Nadu and Madhya Pradesh.

The National Electricity Plan projects India will need approximately 125 gigawatts of associated renewable capacity just to support green hydrogen production targets. Analysts from think tank Ember estimate that aligning with International Energy Agency net-zero pathways would require an additional $101 billion in financing beyond the $293 billion already needed for existing renewable targets.

Green Hydrogen Mission Takes Center Stage

The National Green Hydrogen Mission, launched with ₹19,744 crore in government funding through 2030, aims to establish India as a global hub for production, utilization and export of green hydrogen and derivatives. The mission targets annual production capacity of 5 million metric tonnes by 2030, with associated investments exceeding ₹8 lakh crore and creation of over 600,000 jobs.

Former NITI Aayog CEO Kant emphasized during the November 2025 National Green Economy Conclave that India is positioning itself to become the world's cheapest green hydrogen producer, targeting cost reductions from $4.50 per kilogram to $1 per kilogram by 2030. This dramatic 78 percent cost reduction could revolutionize hard-to-abate sectors including steel manufacturing, fertilizers, aviation and heavy transport.

The Strategic Interventions for Green Hydrogen Transition program allocates ₹17,490 crore for supply-side incentives supporting electrolyzer manufacturing and hydrogen production. Three major ports—Deendayal in Gujarat, V.O. Chidambaranar in Tamil Nadu, and Paradip in Odisha—have been designated as Green Hydrogen Hubs for production, storage, consumption and export activities.

Projected demand for hydrogen in India could reach 15-20 million metric tonnes annually by 2030 across fertilizers, refineries, steel and aviation sectors. By 2050, aviation alone is expected to consume 148.85 million metric tonnes, assuming maintenance of a 2 percent green hydrogen blending mandate, making it the largest hydrogen-consuming sector.

Circular Economy Opportunities

The circular economy pillar of India's green transformation addresses critical import dependencies while creating domestic value chains. India currently imports 87 percent of crude oil, 100 percent of lithium, nickel and cobalt, 93 percent of copper ore, all potash, and 88 percent of urea either directly or indirectly.

Abhishek Jain, Director of Green Economy and Impact Innovations at CEEW, notes that electric vehicles, solar energy and next-generation biofuels could eliminate crude oil imports entirely. Circular economy solutions including lithium-ion battery recycling, e-waste processing, plastic recycling, and used cooking oil reuse could dramatically reduce dependence on imported critical minerals and raw materials.

Waste-to-value industries represent particularly promising opportunities as India generates mounting volumes of electronic waste, construction debris, agricultural residue and municipal solid waste. Converting these waste streams into usable materials, energy or products creates both environmental and economic value while addressing disposal challenges in rapidly urbanizing regions.

Foreign Investment Flows Accelerate

India's renewable energy sector attracted $3.4 billion in foreign direct investment during the first three quarters of fiscal 2025, nearly matching the entire fiscal 2024 total of $3.7 billion. The sector's share of total FDI inflows has surged from approximately 1 percent in fiscal 2021 to around 8 percent in fiscal 2025, reflecting growing global investor confidence in India's clean energy transition.

Major international investments announced include NTPC's preliminary agreements for over ₹2 lakh crore in renewable energy projects across Madhya Pradesh, encompassing solar, wind, pumped hydro storage and carbon-neutral ventures. Ayana Renewable Power plans ₹15,000 crore for a 2-gigawatt renewable project portfolio, while SAEL Industries will invest ₹8,200 crore to build a 5-gigawatt-per-year integrated solar cell and module manufacturing facility in Uttar Pradesh.

The government has enabled 100 percent FDI under the automatic route for renewable energy generation and distribution projects, streamlining approval processes and enhancing ease of doing business for foreign investors. Double taxation avoidance agreements with major capital source countries provide additional incentives for cross-border investment flows.

Technology and Manufacturing Push

India is rapidly building domestic manufacturing capabilities across the clean energy value chain, reducing import dependence and creating employment opportunities. The country now hosts over 20 wind turbine manufacturers producing 53 different models of international quality up to 3 megawatts in size, with exports to Europe, United States and other markets demonstrating competitive positioning.

Solar module manufacturing capacity expansion continues at pace, with companies including Vikram Solar, Waaree Energies and Emmvee Group announcing major facility investments. Emmvee announced a ₹15,000 crore investment to establish manufacturing facilities and generate 10,000 jobs, while Waaree Energies has commenced commercial production at a solar cell manufacturing facility in Gujarat's Chikhli.

The semiconductor ecosystem partnership with Singapore, formalized through government-to-government and business-to-business frameworks, positions India to participate in global chip manufacturing supply chains essential for renewable energy, electric vehicles and digital infrastructure. India's semiconductor market is projected to reach $108 billion by 2030.

Infrastructure and Grid Modernization

Achieving ambitious renewable targets requires massive transmission infrastructure investments to connect generation sources with demand centers. India needs approximately 280 gigawatts of new interstate transmission capacity by 2030, slightly more than double the expansion already planned through 2025, according to analysis from Lawrence Berkeley National Laboratory.

The Ministry of Power has initiated reforms enabling open access for renewable energy consumers, waiving interstate transmission charges for power used in green hydrogen production, and facilitating virtual power purchase agreements. These policy measures aim to enhance grid flexibility and enable efficient integration of variable renewable generation.

Battery energy storage systems are emerging as critical enablers of renewable energy integration, with multiple partnerships announced for large-scale deployment. ONGC and Tata Power Renewable signed a memorandum of understanding for battery storage systems, while pumped hydro storage projects totaling 3,600 megawatts have been planned through agreements between Avaada Group and state governments.

Employment and Skills Development

The projected 48 million jobs across green value chains by 2047 represents one of the largest employment generation opportunities in India's economic history. Nearly half of these positions will emerge in bioeconomy and nature-based solutions, diversifying rural economic activities beyond conventional agriculture and creating climate-resilient livelihoods.

Electric vehicle manufacturing alone will account for the largest employment share within energy transition sectors, followed by renewable energy installation and maintenance, battery production, and charging infrastructure deployment. The shift toward sustainable mobility is accelerating, with state governments implementing supportive policies and automakers committing to electrification roadmaps.

Skills development programs under the National Green Hydrogen Mission have already certified over 5,600 trainees in hydrogen-related areas. Coordinated workforce development initiatives will be essential to ensure availability of qualified personnel across emerging green sectors, from advanced manufacturing to sustainable agriculture practices.

Policy Framework and International Partnerships

India participated in the World Hydrogen Summit in Rotterdam 2024 with its first India Pavilion, signaling elevated international engagement on clean energy. Collaborative efforts with the European Union, United Kingdom, Germany and Singapore span standards development, regulations, market mechanisms and creation of export-oriented hydrogen hubs.

The government is developing a comprehensive regulatory framework for the green economy, including hydrogen certification schemes to verify and track carbon footprints, quality standards across 36 value chains, and blended finance mechanisms to de-risk private investment. Policy stability addressing bottlenecks like land availability and permitting processes will be essential to accelerate capital mobilization.

India's climate commitments under the Paris Agreement include achieving net-zero carbon emissions by 2070, deriving 50 percent of electricity from non-fossil sources by 2030, and reducing emissions intensity of GDP. The green economy transition aligns directly with these nationally determined contributions while creating substantial co-benefits for employment, energy security and industrial competitiveness.

Challenges and Implementation Roadmap

Despite enormous opportunity, significant challenges remain in translating potential into reality. Financing barriers persist, with renewable projects facing investment risks from payment delays to regulatory uncertainties. The gap between announcement and commissioning of green hydrogen projects is notable—as of August 2025, 94 percent of planned capacity remained beyond the announcement stage, with only 2.8 percent operational.

Jayant Sinha, president of Everstone Group and Eversource Capital and former Union minister of state, emphasizes that policy stability, resolution of land and permitting bottlenecks, and deployment of blended finance tools will be critical to de-risk investment. A whole-of-government approach is needed to mobilize the capital required for this trillion-dollar opportunity.

Technology dependencies in areas including advanced batteries, electrolyzers and certain manufacturing equipment require attention through domestic R&D initiatives and strategic partnerships. The mission allocates ₹400 crore for research and development, with emphasis on goal-oriented, time-bound projects designed to scale up globally competitive technologies.

India's Green Growth Pathway

Kant articulated the strategic imperative during the CEEW study launch, noting that as India moves beyond a $3 trillion economy, it cannot replicate Western development models. With much infrastructure yet to be built, the nation has a unique opportunity to design cities, industries and supply chains around circularity, clean energy and bioeconomy principles from the outset.

The parallel to India's digital public infrastructure success is deliberate—just as UPI, Aadhaar and other platforms enabled technological leapfrogging, achieving in seven years what might have taken decades, the green economy represents an opportunity to pole-vault into sustainable development leadership. While much of the developed world remains locked into legacy fossil fuel systems, India can establish a new pathway and set global benchmarks.

For investors, the message is clear and compelling. The ₹360 trillion cumulative opportunity through 2047 spans proven technologies like solar and wind, emerging sectors like green hydrogen and battery storage, and entirely new value chains in bioeconomy and circular economy domains. With supportive government policies, accelerating technology cost reductions, and massive domestic demand growth, India's green transition represents one of the world's most significant investment destinations for patient capital seeking substantial, sustainable returns.

The transformation will not be linear or without setbacks, but the direction is established and momentum is building. As global capital increasingly seeks climate-aligned investment opportunities with strong fundamentals, India's combination of scale, ambition, policy support and growth potential positions the nation to capture significant share of worldwide clean energy investment flows while charting a development course that prioritizes both prosperity and planetary boundaries.