Environmental, Social, and Governance

Esteemed Stakeholders

The renewable energy sector is witnessing a remarkable transformation, driven not only by regulatory mandates but also by the compelling economic benefits of sustainability. Over the past decade, India’s renewable energy landscape has evolved rapidly, positioning the country as a key player on the global stage. The government’s ambitious targets of achieving 500 GW of renewable energy capacity by 2030 and net-zero emissions by 2070 provide a strong foundation for this ongoing industrial transformation. Solar power, in particular, has become a cornerstone of this evolution.

Strategic initiatives such as the National Solar Mission, PM Surya Ghar Muft Bijli Yojana, and the National Hydrogen Mission are critical in propelling this transition. These programmes not only foster innovation but also create a conducive environment for investment and growth across the sector.

For instance, the National Solar Mission aims to establish India as a global leader in solar energy production and utilisation, promoting indigenous manufacturing and widespread adoption of solar technologies across various industrial segments. The PM Surya Ghar Muft Bijli Yojana is similarly driving demand for solar-powered residential installations, thereby stimulating the entire solar ecosystem from production to implementation. This scheme has seen remarkable engagement, with over 1.28 Crores registrations and 14 Lakh applications as highlighted in the Union Budget.

Moreover, the National Hydrogen Mission is poised to revolutionise the energy landscape by promoting green hydrogen production and utilisation. This initiative is set to integrate renewable energy sources into industrial processes, reduce carbon emissions, and enhance energy efficiency. The mission targets the development of green hydrogen production capacity of at least 5 million metric tonnes per annum, with an associated renewable energy capacity addition of about 125 GW in the country, representing a total investment of over ₹ 8 Lakh Crores.

India’s renewable energy sector is further strengthened by substantial investments and progressive policies that encourage innovation and sustainability. The integration of solar energy across industries not only enhances energy security but also drives economic growth and job creation. The robust outlook for renewable energy adoption underscores its pivotal role in shaping India’s industrial future.

Chairman’s Insights on the Macroeconomic Environment

The current macroeconomic environment is characterised by a transformative shift toward sustainable energy, driven by necessity and opportunity. Renewable energy, particularly solar, has emerged as a cornerstone of economic stability and growth. This sector is addressing the volatility and environmental impact of fossil fuels and becoming a significant driver of economic resilience.

The decline in costs and advancements in solar technology have positioned it as a competitive and reliable energy source. Globally, financial markets are increasingly favoring investments in green technologies, supported by strong policy frameworks and international commitments to carbon reduction. This influx of capital into renewable energy fosters innovation and broadens the scope of sustainable development.

India stands at the forefront of this green revolution, with substantial investments and ambitious targets for renewable energy capacity. The country’s solar PV manufacturing capacity of 64.5 GW, coupled with an additional proposed 48.3 GW capacity under Tranche I and II of the Production Linked Incentive (PLI) scheme, underscores its readiness to meet escalating demands and strengthen its position in the global market. The Tranche II PLI scheme is expected to generate over 1,01,487 jobs, contributing significantly to both direct and indirect employment

Beyond energy security, the renewable sector drives economic diversification and job creation, contributing to broader macroeconomic stability. The alignment of sustainability with economic goals enhances public health, reduces environmental degradation, and ensures long-term prosperity.

In summary, the macroeconomic environment is becoming increasingly favourable for renewable energy. Technological advancements, supportive policies, and global investment trends provide a robust foundation for sustained growth. This environment supports the transition to a sustainable future while driving economic resilience and prosperity.