Green Growth in India: New Incentives for Clean Energy and ESG-Driven Investment

Introduction

As the world accelerates toward a sustainable future, India has positioned itself as a leading destination for clean energy investment. With ambitious climate goals, robust policies, and sectoral incentives, the country is opening vast opportunities for foreign investors, especially those prioritizing ESG (Environmental, Social, Governance) metrics.

At the International Advisory Council (IAC), we help international companies, EDBs, and IPAs align their goals with India’s evolving green economy, offering hands-on India investment facilitation and cross-border business promotion in high-potential clean energy sectors.


India’s Green Growth Vision

India aims to:

  • Achieve 500 GW of non-fossil fuel energy capacity by 2030
  • Reach net-zero carbon emissions by 2070
  • Electrify its transport sector and decarbonize manufacturing
  • Make India a global hub for green hydrogen, solar PV, and EVs

These goals are supported by policies and incentives that lower the barriers for business setup in India across clean energy value chains.


Key Government Incentives for Green Investment

1. PLI Schemes for Solar and Battery Storage

The Production-Linked Incentive (PLI) schemes offer billions in incentives to firms that manufacture:

  • High-efficiency solar PV modules
  • Advanced chemistry cell (ACC) batteries
  • EV components and power electronics

Foreign firms are encouraged to apply and set up green tech facilities under joint ventures or independently.

2. Green Hydrogen Mission

With a budget of ₹19,744 crore, the National Green Hydrogen Mission aims to make India a global hub for the production and export of green hydrogen and its derivatives.

This is a major pull for clean energy startups, electrolyzer manufacturers, and international chemical companies seeking India market entry support.

3. Faster Clearances and Single-Window Systems

The National Single Window System (NSWS) now includes green project approvals, making it easier to secure environmental and land permits.


Sectors Ripe for Foreign Investment

  • Solar & Wind Energy: Project development, EPC, and component manufacturing
  • Electric Vehicles: Battery packs, charging infrastructure, software integration
  • Green Buildings: Materials, certification platforms, smart grid technologies
  • Carbon Markets: ESG consulting, credit trading, emission management platforms

ESG Compliance: A Strategic Advantage in India

India’s regulators and investors are embracing ESG. Stock exchanges now mandate ESG disclosures, and international capital increasingly flows toward sustainable businesses. Foreign firms entering India with robust ESG strategies:

  • Gain faster investor traction
  • Attract government and multilateral support
  • Build long-term reputational value

At IAC, we help investors craft ESG-aligned proposals and connect them with relevant sector-focused investment campaigns in India.


Real-World Snapshot: APAC Clean Energy Fund

An APAC-based green energy fund worked with IAC to explore solar manufacturing in India. We:

  • Aligned the project with PLI scheme criteria
  • Connected them with Indian EPC firms through B2B matchmaking India
  • Managed in-country representation India to handle permits, CSR, and PR
  • Helped them participate in a national investment roadshow for clean tech

The result: A 30 MW solar panel facility in Gujarat, with plans to expand capacity in 2026.


How IPAs and EDBs Can Collaborate

Foreign IPAs and EDBs can co-host sustainable investment delegations with IAC, showcasing India’s green growth story to investors in their regions. We also assist in:

  • Crafting ESG-aligned investment promotion materials
  • Organizing India delegation support for cleantech sectors
  • Curating virtual and in-person roundtables for green investors from India

Conclusion

India’s green growth momentum is real—and global investors stand to benefit from its scale, policy clarity, and innovation-friendly ecosystem. Whether you’re a manufacturer, fund, or technology partner, the opportunities are rich and expanding.

At IAC, we bridge the gap between India’s sustainability goals and your strategic interests—turning environmental action into business opportunity.

Green Growth in India: New Incentives for Clean Energy and ESG-Driven Investment

Introduction

As the world accelerates toward a sustainable future, India has positioned itself as a leading destination for clean energy investment. With ambitious climate goals, robust policies and sectoral incentives, the country is opening vast opportunities for foreign investors, especially those prioritizing ESG (Environmental, Social, Governance) metrics.

At the International Advisory Council (IAC), we help international companies, EDBs and IPAs align their goals with India’s evolving green economy, offering hands-on India investment facilitation and cross-border business promotion in high-potential clean energy sectors.


India’s Green Growth Vision

India aims to:

  • Achieve 500 GW of non-fossil fuel energy capacity by 2030
  • Reach net-zero carbon emissions by 2070
  • Electrify its transport sector and decarbonize manufacturing
  • Make India a global hub for green hydrogen, solar PV and EVs

These goals are supported by policies and incentives that lower the barriers for business setup in India across clean energy value chains.


Key Government Incentives for Green Investment

1. PLI Schemes for Solar and Battery Storage

The Production-Linked Incentive (PLI) schemes offer billions in incentives to firms that manufacture:

  • High-efficiency solar PV modules
  • Advanced chemistry cell (ACC) batteries
  • EV components and power electronics

Foreign firms are encouraged to apply and set up green tech facilities under joint ventures or independently.

2. Green Hydrogen Mission

With a budget of ₹19,744 crore, the National Green Hydrogen Mission aims to make India a global hub for the production and export of green hydrogen and its derivatives.

This is a major pull for clean energy startups, electrolyzer manufacturers and international chemical companies seeking India market entry support.

3. Faster Clearances and Single-Window Systems

The National Single Window System (NSWS) now includes green project approvals, making it easier to secure environmental and land permits.


Sectors Ripe for Foreign Investment

  • Solar & Wind Energy: Project development, EPC and component manufacturing
  • Electric Vehicles: Battery packs, charging infrastructure, software integration
  • Green Buildings: Materials, certification platforms, smart grid technologies
  • Carbon Markets: ESG consulting, credit trading, emission management platforms

ESG Compliance: A Strategic Advantage in India

India’s regulators and investors are embracing ESG. Stock exchanges now mandate ESG disclosures and international capital increasingly flows toward sustainable businesses. Foreign firms entering India with robust ESG strategies:

  • Gain faster investor traction
  • Attract government and multilateral support
  • Build long-term reputational value

At IAC, we help investors craft ESG-aligned proposals and connect them with relevant sector-focused investment campaigns in India.


Real-World Snapshot: APAC Clean Energy Fund

An APAC-based green energy fund worked with IAC to explore solar manufacturing in India. We:

  • Aligned the project with PLI scheme criteria
  • Connected them with Indian EPC firms through B2B matchmaking India
  • Managed in-country representation India to handle permits, CSR and PR
  • Helped them participate in a national investment roadshow for clean tech

The result: A 30 MW solar panel facility in Gujarat, with plans to expand capacity in 2026.


How IPAs and EDBs Can Collaborate

Foreign IPAs and EDBs can co-host sustainable investment delegations with IAC, showcasing India’s green growth story to investors in their regions. We also assist in:

  • Crafting ESG-aligned investment promotion materials
  • Organizing India delegation support for cleantech sectors
  • Curating virtual and in-person roundtables for green investors from India

Conclusion

India’s green growth momentum is real—and global investors stand to benefit from its scale, policy clarity and innovation-friendly ecosystem. Whether you’re a manufacturer, fund, or technology partner, the opportunities are rich and expanding.

At IAC, we bridge the gap between India’s sustainability goals and your strategic interests—turning environmental action into business opportunity.

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