India Projected to Lead Global Renewable Growth, Above China: WEF 2025 Report

The global green economy has surged past the USD 5 trillion mark - surpassing the GDP of most nations bar three - and is on track to exceed USD 7 trillion by 2030, according to the World Economic Forum’s (WEF) latest flagship report, "Already a Multi-Trillion-Dollar Market."

While China continues to dominate in absolute investment numbers, the report identifies India as a rising powerhouse, projecting it to become the fastest-growing renewable energy market in the world through 2030. Keep in mind that China has raced past its 2030 targets in 2024-25 itself, and is now moving slowly into consolidation mode, even as 2025 insyalltions are set to beat 2024 installs handily.

The "Multi-Trillion" Opportunity

The report, published in collaboration with Boston Consulting Group, highlights that the green economy is now the second-fastest-growing sector globally, outpaced only by the technology sector.

"Despite macroeconomic uncertainties, the green economy is not stalling; it is accelerating," the report states. "Solutions to decarbonise more than 50 percent of total emissions are already cost-competitive."

India Overtakes China in Growth Rate

In a significant shift in the global energy landscape, the report projects that India will lead the world in the rate of renewable capacity expansion.

Between 2024 and 2030, India is forecast to post an annual growth rate of 16 percent in renewable electricity capacity, edging out China (15 percent) and significantly outperforming the global average.

Source: WEF "Already a Multi-Trillion-Dollar Market" Report, 2025.

This rapid acceleration is driven by what the report describes as a "favorable policy environment," specifically citing India’s Production Linked Incentive (PLI) schemes for solar modules and advanced batteries, which are designed to reduce import dependence and boost domestic manufacturing.

Investment Landscape: A USD 81 Billion Surge

While China remains the undisputed leader in total volume, spending USD 659 billion on clean energy between 2019 and 2024 - India has seen a massive surge in capital inflow.

The report notes that India’s annual investment in clean energy reached USD 81 billion in the same period, growing at a rate of approximately 12 percent annually. This influx of capital has allowed India to achieve its target of 50 percent non-fossil fuel electricity capacity well ahead of its 2030 deadline.

Key Takeaways for the Indian Market

The report outlines several critical trends that place India in a "sweet spot" for the next decade of green growth. Cost competitiveness, for example, is a critical factor. Solar and wind are now the cheapest sources of new power in India, driving adoption purely on economic grounds rather than just policy mandates.

In addition, companies with significant "green" revenue streams (like those in India's renewable sector) are seeing valuation premiums of 12-15 percent compared to traditional peers.

Moreover, being a climate-vulnerable nation, India is also cited as a key market for the burgeoning "adaptation economy" - investments in resilient infrastructure, water efficiency, and heat-resistant agriculture, which has now reached USD 1.1 trillion globally.

With the green economy projected to grow by another USD 2 trillion in the next five years, the report concludes that early movers like India, which are combining policy support with cost-competitive deployment, are best positioned to capture the lion's share of this economic revolution.