Should India Increase Its Investment in Renewable Energy? -
As India stands at the threshold of becoming one of the world’s fastest-growing major economies, the question of how it powers its future has never been more urgent. With rising energy demands, worsening climate impacts, and global pressure to shift toward sustainable practices, the debate over whether India should increase its investment in renewable energy has taken centre stage. The answer, in many ways, seems obvious—but the path to achieving it is far from simple.
India’s energy needs are immense and still growing. A young population, rapid urbanisation, and expanding industries mean the country will require massive amounts of electricity in the coming decades. Traditionally, coal has been the backbone of India’s power generation. Even today, more than half of the country’s electricity comes from coal-based plants. But this dependency comes at a heavy
environmental and public health cost—air pollution, deforestation, and rising carbon emissions that contribute to global warming. If India wants to pursue development without compromising the health of its people or the planet, renewable energy must become a much larger part of the equation.
The good news is that India has already made significant strides in this direction. It is now one of the world’s leading producers of solar and wind energy. Programs like the International Solar Alliance, large-scale solar parks, and government incentives have pushed renewable capacity to new heights. Solar power, in particular, has become remarkably affordable, making it an attractive alternative to traditional fossil fuels. Yet, despite this progress, the share of renewables in India's total energy mix remains smaller than what a climate-vulnerable nation of its size requires.
Increasing investment in renewable energy could bring major economic benefits. For one, the renewable sector is labour-intensive and has the potential to create millions of new jobs—from manufacturing solar panels and wind turbines to installing and maintaining these systems. At a time when India aims to boost employment and expand its manufacturing base, this sector offers an opportunity aligned with the government’s “Make in India” vision.
Moreover, achieving energy independence through renewables would reduce India’s reliance on imported coal and oil, strengthening national security and stabilising the economy against global price fluctuations.
But while the benefits are compelling, the challenges are equally real. Renewable energy infrastructure requires significant upfront investment, long-term planning, and reliable storage systems to manage intermittent supply. Solar energy cannot generate power at night, and wind power fluctuates with weather conditions. Without adequate storage technology and a strong grid system, renewables alone cannot meet India’s round-the-clock energy requirements. Additionally, land acquisition for large solar parks often sparks conflict with local communities and raises concerns about displacement.
Another challenge lies in balancing the transition with the realities of India’s developmental needs. Millions of people still live without stable electricity. The government cannot abruptly abandon coal, which remains cheaper and more reliable in many regions. A gradual transition, therefore, becomes essential—one that increases renewable capacity while modernising coal plants and improving energy efficiency across sectors.
Even with these hurdles, the cost of inaction is far greater. India is already experiencing the harsh effects of climate change—heatwaves, erratic monsoons, floods, and droughts have become alarmingly frequent. Investing more aggressively in renewable energy is not just an economic choice but a survival strategy for the future. The global transition toward clean energy is inevitable, and India cannot afford to fall behind. With the right policies, technological innovation, and political will, India can lead the world in the renewable energy revolution.
The question is not whether India should increase its investment in renewable energy—it must. The real question is how quickly and how effectively it can do so while ensuring that growth, equity, and sustainability move forward together. The country’s future depends on getting this balance right.
