Page 56 - FIPI - Policy & Economic Report May 2026

May 2026 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

this message reflects the direction in which both India and the world are moving, with sustainability and
self-reliance becoming central to future growth pathways.

The Union Minister observed that in the current global context, energy policy has become synonymous
with industrial and trade policy. He pointed out that evolving global frameworks such as carbon-linked
trade regulations are reshaping international markets. Shri Joshi noted that for Indian industry, adoption
of renewable energy is no longer optional but essential for maintaining export competitiveness and
managing future cost pressures.

Highlighting India’s rapid progress, Shri Joshi stated that the country has recorded one of the fastest
expansions in renewable energy capacity globally. He cited significant growth across non-fossil energy,
solar and wind capacity, as well as major advancements in domestic manufacturing of solar modules and
cells. He also noted that renewable energy played a critical role in meeting India’s record peak power
demand, contributing nearly one-third of the highest-ever demand of 256 GW.

He further highlighted that at a time when global renewable energy investments declined by around 7 %,
India continued to attract strong investment flows, underscoring growing global confidence in its clean
energy trajectory. Shri Joshi emphasised that this progress reflects the deep and effective partnership
between the government and industry, which has been instrumental in driving India’s renewable energy
expansion.

Shri Joshi outlined key policy measures undertaken to strengthen the renewable energy sector, including
notification of long-term Renewable Consumption Obligation trajectories, introduction of Carbon Credit
Certificate Regulations, 2026, long-term green ammonia procurement agreements, a standardised
warranty framework for solar PV modules, the Renewable Energy Equipment Import Monitoring System,
and tax and duty reforms supporting domestic manufacturing. He stated that these measures aim to
provide long-term policy stability, enhance investor confidence and promote domestic value addition.

The Minister highlighted that renewable energy is becoming a critical determinant of competitiveness in
key industrial sectors such as steel, aluminium, chemicals, automotive and textiles. He emphasised the
importance of emerging areas including green hydrogen, battery storage, pumped hydro, offshore wind
and round-the-clock renewable energy solutions in the next phase of growth.

Shri Joshi expressed confidence that India is well on track to achieve its target of 500 GW of non-fossil fuel
capacity by 2030. He stressed that the next phase will require deeper integration of generation, storage
and transmission systems, along with enhanced grid resilience. He also underlined the importance of
continued collaboration between government and industry to sustain the momentum of growth.

The Minister said India’s non-fossil fuel capacity has increased from 81 GW in 2014 to 288 GW at present,
registering a growth of over (256 %). Solar energy capacity has risen from 2.8 GW to 155 GW, while wind
energy capacity has grown from 21 GW to 56.4 GW.

Acknowledging the role of industry stakeholders, Shri Joshi stated that the progress achieved in India’s
renewable energy sector is a result of strong public-private partnership. “The shared commitment
between government and industry will be even more critical as we move towards building a globally

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