India Becomes World’s Third-largest Renewable Energy Market in 2025

India’s renewable energy market surged to become the world’s third-largest in 2025, according to the latest report by International Renewable Energy Agency.

The Indian renewable energy market now trails only China and the United States, driven by rapid growth in solar and wind capacity despite global energy uncertainty.

India added nearly 45 gigawatts (GW) of renewable capacity in 2025, pushing total installed capacity to 250.5 GW, up from 175.9 GW in 2023. A major driver was solar power, which alone accounted for about 37 GW of new capacity. This makes India the second-largest contributor to global solar expansion, behind China.

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The report highlights how Asia is dominating clean energy growth. The region more than doubled its installed solar capacity since 2022, adding 317 GW in 2024 and 371 GW in 2025. Meanwhile, global wind energy additions hit a record 158 GW in 2025. India contributed 6.3 GW in wind capacity, marking its highest annual increase.

Hydropower also saw steady gains. India’s installed hydro capacity rose from 52 GW in 2024 to 56 GW in 2025, while pumped hydro storage increased to 7.2 GW, strengthening grid reliability.

Globally, renewable energy reached 5,149 GW after a 692 GW addition in 2025, accounting for 85.6 percent of total capacity expansion. However, the share dipped slightly from 92 percent in 2024 due to a rebound in non-renewable energy.

“In the midst of uncertain times, renewable energy remains consistent and steadfast in its expansion. This not only indicates market preference but also makes a strong case for renewable energy resilience with brutal clarity,” said Francesco La Camera.

The report adds that countries investing in clean energy are better positioned to handle global crises, improving energy security and long-term competitiveness.