Indian corporations are significantly reallocating their capital expenditure toward clean energy and climate-aligned projects, marking a decisive shift in the country's industrial landscape. From power utilities to steel manufacturers, major companies are committing substantial resources to renewable energy, green hydrogen, and low-carbon manufacturing technologies.

Market Opportunity and Investment Potential

A comprehensive study by the Council on Energy, Environment and Water (CEEW) reveals the massive scale of India's green economy opportunity. The research projects that India could attract ₹341.00 lakh crore in cumulative green investments by 2047, while simultaneously creating 48 million full-time equivalent jobs. The assessment further estimates a potential annual green market worth ₹91.00 lakh crore by 2047, underscoring the economic significance of the clean energy transition.

Tata Power's Ambitious Clean Energy Expansion

Tata Power has announced one of India's largest clean energy investment programs, outlining a ₹1.25 lakh crore capital expenditure plan over the next five years. The utility aims to scale its total generation capacity to approximately 30 GW by FY30, with 65% of the planned capital directed toward clean and green energy initiatives.

The investment strategy encompasses expanding renewable capacity to over 20 GW, strengthening transmission infrastructure, and developing emerging businesses including solar manufacturing and electric vehicle charging networks. Managing Director and CEO Praveer Sinha emphasized that the program will focus on renewable generation, transmission upgrades, distribution reforms, and next-generation energy solutions.

JSW Energy's Green Hydrogen Leadership

JSW Energy has operationalized India's largest green hydrogen manufacturing facility under the National Green Hydrogen Mission. The plant, strategically located alongside JSW Steel's Vijayanagar facility in Karnataka, represents a significant milestone in industrial decarbonization efforts.

The company has secured a seven-year offtake agreement to supply 3,800 tonnes per annum of green hydrogen and 30,000 tonnes per annum of green oxygen to JSW Steel's direct reduced iron unit. JSW Energy currently maintains 30.50 GW of locked-in generation capacity and 29.40 GWh of locked-in energy storage capacity, targeting 30 GW of generation and 40 GWh of storage by FY30.

Manufacturing Sector Investments

Waaree Energies is deploying approximately ₹8,175 crore across multiple clean energy manufacturing segments. The company plans to expand its lithium-ion battery energy storage systems capacity from 3.50 GWh to 20.00 GWh with ₹8,000 crore investment. Additional commitments include increasing electrolyser manufacturing capacity from 300 MW to 1,000 MW (₹125 crore) and expanding inverter capacity from 3 GW to 4 GW (₹50 crore).

JSW Steel is investing ₹50,000-60,000 crore over three to four years to build 10 million tonnes of green steel capacity at its Salav Works unit in Maharashtra. This output will primarily serve European export markets, where the Carbon Border Adjustment Mechanism becomes effective from 2026.

ONGC's Renewable Energy Subsidiary

ONGC Green, established as a wholly-owned subsidiary in 2024, is responsible for delivering the parent company's 10 GW renewable capacity target by 2030. CEO and Executive Director Sanjay Kumar Mazumder projects the subsidiary will contribute ₹6,000 crore in EBITDA by 2030, representing approximately 9% of ONGC's standalone EBITDA in FY24.

According to Grant Thornton Bharat partner Rishi Shah, reallocating capital toward climate-aligned projects demonstrates economic prudence, as green spending multipliers typically exceed traditional capital expenditure due to higher domestic content and labor intensity. With India requiring nearly ₹33.00 lakh crore in renewable financing by 2030, strategic government policies and clear regulatory frameworks remain crucial for catalyzing private sector investment.

India has achieved a remarkable economic milestone by surpassing Japan to become the world's fourth-largest economy, with its GDP reaching $4.18 trillion. This achievement positions India as the fastest-growing major economy globally, demonstrating resilience amid persistent global trade uncertainties.

Strong GDP Growth Performance

India's economic performance has shown consistent improvement across recent quarters. The country's real GDP growth accelerated to 8.2% in the second quarter of FY26, marking a six-quarter high.

This upward trajectory reflects India's strong domestic fundamentals, with robust private consumption playing a central role in supporting economic expansion.

Global Economic Ranking and Future Projections

With its current GDP of $4.18 trillion, India has successfully overtaken Japan in global economic rankings. The United States maintains its position as the world's largest economy, followed by China in second place. According to government projections, India is positioned to displace Germany from the third rank within the next 2.5 to 3 years, targeting a GDP of $7.3 trillion by 2030.

International Agency Forecasts

Multiple international organizations have expressed optimism about India's economic prospects, providing robust growth projections for the coming years.

These projections consistently position India as the fastest-growing G20 economy, with Fitch raising its FY26 projection to 7.4% based on stronger consumer demand expectations.

Economic Fundamentals and Policy Environment

India's economic success is underpinned by several positive indicators that support sustained growth momentum:

• Inflation Control: Inflation remains below the lower tolerance threshold
• Employment: Unemployment is on a declining trajectory
• Trade Performance: Export performance continues to improve
• Financial Conditions: Benign financial environment with strong credit flows to the commercial sector
• Consumer Demand: Firm demand conditions supported by strengthening urban consumption

Long-term Vision and Strategic Goals

The government has outlined ambitious targets for India's economic future, aiming to attain high middle-income status by 2047, coinciding with the centenary year of India's independence. This vision is built on strong foundations of economic growth, structural reforms, and social progress. The consistent performance across multiple economic indicators suggests India is well-positioned to sustain its growth momentum and achieve these long-term objectives.