India has attracted a substantial $3.8 billion in foreign direct investment (FDI) in the solar energy sector over the past three financial years and until September 2023, according to Bhagwant Khuba, Minister of State for Ministry of New and Renewable Energy, and Chemicals and Fertilisers.
Khuba highlighted the significant contribution of both domestic and foreign investors towards the installation of solar power plants in the country. This surge in FDI reflects the confidence investors have in India’s solar energy sector.
Speaking at the third edition of ETEnergyWorld’s Solar Power Congress 2024, Khuba mentioned that renewable energy projects, including solar energy, can benefit from up to 100% FDI through the automatic route. This move aims to stimulate growth and development in India’s renewable energy sector.
He emphasised that India is witnessing an exciting phase in the renewable energy industry, with the government implementing various measures to promote solar energy. Initiatives such as waiving ISTS charges for renewable energy projects commissioned by June 30, 2025, and declaring a trajectory for renewable purchase obligation up to 2030, are driving the sector forward.
Additionally, Khuba highlighted the launch of several groundbreaking schemes, including PM-KUSUM, solar rooftops phase-II, and a production-linked incentive scheme for higher efficiency solar PV models. These initiatives have led to a significant increase in India’s installed solar power generation capacity, which has surged from 2.8 GW in 2014 to over 73 GW presently.
Looking ahead, Khuba noted that India is expected to continue its momentum of growth in solar power generation capacity. Under the production-linked incentive scheme, letters of award have already been issued for the establishment of 48 GW of solar PV module manufacturing capacity in India, with four companies beginning partial production under this scheme.
