Page 23 - Policy & Economic Report - June 2025
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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
The report mentioned that a major driver of this expansion has been the strong push towards renewable
energy. The report noted a significant increase in investments in clean energy, especially solar
photovoltaic (PV) projects. In fact, solar PV alone accounted for more than half of the total non-fossil
energy investment in India over the past five years. In 2024, as much as 83 per cent of power sector
investment in the country went into clean energy initiatives.
India was also the largest recipient of development finance institution (DFI) funding for clean energy in
2024. The country received around USD 2.4 billion in project-specific funding aimed at boosting clean
energy generation.
In terms of foreign investment, India has seen a steady rise in foreign direct investment (FDI) in the power
sector. FDI reached USD 5 billion in 2023, nearly twice the level seen before the COVID-19 pandemic. This
growth is partly driven by government policies that allow 100 per cent FDI in all areas of electricity
generation (except nuclear power) and transmission infrastructure.
Overall, the IEA report outlined India’s strong performance in power generation and its growing focus on
clean energy investment.
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