India to outpace world in renewable capacity as green economy heads for $7 tn

The global green economy has crossed USD 5 trillion and is expected to exceed USD 7 trillion in annual value by 2030, with India projected to post the fastest growth in renewable electricity capacity and generation, according to a World Economic Forum report released on Tuesday.

The report, developed with the Boston Consulting Group, said the green economy has been the second-fastest growing sector over the past decade, with businesses across industries already benefiting from its expansion. It said investment in green technologies continues to hit record levels despite economic uncertainty and divergent market environments.

The WEF identified the green economy as one of the world’s fastest-growing sectors, second only to tech, and said companies adopting green solutions are seeing clear financial advantages. The research found that firms with green revenues generally outperform across several financial indicators.

On average, green revenues grow at twice the rate of conventional business lines across the market, the report said. It added that the cost of capital for companies with green revenues is usually lower, and firms deriving more than 50 per cent of their revenues from green markets often receive valuation premiums of 12–15 per cent on capital markets, reflecting investor confidence in their long-term resilience and profitability.

Global renewable capacity is projected to grow at an average of 10 per cent annually between 2024 and 2030. India is forecast to lead with 16 per cent growth, followed by China at 15 per cent. Renewable electricity generation is expected to grow at 9 per cent globally, with India again at the top with 13 per cent and China at 12 per cent, the report said.

It also noted that India and China have both recorded annual clean energy investment growth of 12 per cent from 2019 to 2024, though China’s absolute investment remains higher.

The report includes 14 case studies, including one on India’s ReNew. The company has expanded into one of India’s leading independent renewable power producers, with a diversified pipeline of more than 28 GW spanning wind, solar, storage and emerging green fuels.

ReNew Chair and CEO Sumant Sinha said energy security remains a key priority for a developing country like India. “We are rich in renewable energy resources, so the more energy we produce domestically, and the more equipment we manufacture to enable that, the safer and more resilient we become in the current context,” he said.

“India is thus increasingly focused on tapping all available local resources. That’s why the government continues to advance low-carbon solutions like green hydrogen and green ammonia to reduce import dependence and enhance strategic autonomy,” Sinha added.

(With inputs from agencies)