Green Investments To Rise To 31 Lakh Crore By 2030 - How You Can Invest In Green Energy Theme

India’s green economy story is gaining traction globally. Global analytics company Credit Rating Information Services of India Ltd. (Crisil) projects that India will see a five-fold growth in green investments between 2025 and 2030 as they rise to Rs 31 lakh crore.

The global analytics company also said that as much as Rs 19 lakh crore will go towards renewable energy generation and storage and Rs 4.1 lakh crore will go into transport and automotive sectors. Additionally, as much as Rs 3.3 lakh crore will go into oil and gas.

Crisil added that this Rs 31 lakh crore investment is a part of the USD 10 trillion investments India needs to make by 2070 to achieve the country’s net-zero goals as per the Updated First Nationally Determined Contribution (NDC) under the Paris Agreement.

Stocks of companies engaged in the renewable energy sector are also likely to gain from the increase in investment. Ravi Singh, the Senior Vice President - Retail Research at Religare Broking Ltd. said that stocks within the renewable energy sector such as Waaree Renewable Technologies, Inox Wind and Suzlon Energy have already delivered substantial returns in the past five years due to India’s push for green energy.

“Over the past one to five years, India's renewable energy sector has delivered substantial returns for investors. For instance, Waaree Renewable Technologies' stock surged approximately 60,880 per cent over five years and 626 per cent in the past year. Inox Wind's shares increased by about 2,884 per cent over five years and 440 per cent in the last year. Suzlon Energy also performed well, with a 2,636 per cent rise over five years and 223 per cent in the past year,” Singh told Outlook Money.

Singh also said that stocks within the renewable energy sector are likely to gain on a long-term basis. He added that stocks such as Waaree Renewable Technologies and Tata Power are likely to benefit from robust expansion plans in the solar and wind energy space.

“Companies like Waaree Renewable Technologies and Tata Power are leaders, with robust expansion plans in solar and wind energy. Suzlon Energy and Inox Wind focused on wind energy, are benefiting from increased capacity addition in the sector. Additionally, ReNew Energy Global, despite past challenges, has a strong portfolio and ambitious growth targets,” Singh said.

Singh also advised investors to focus on companies with diversified portfolios, strong financials and alignment with broader renewable energy goals.

“Investors should focus on companies with diversified portfolios, strong financials, and alignment with India’s renewable energy goals,” Singh said.

Singh said that apart from equity, investors can also participate in the renewable energy theme by investing in green bonds issued by companies or government entities.

“Investors in India can participate in the renewable energy theme beyond equity through multiple avenues. Green Bonds issued by companies or government entities offer fixed returns while funding sustainable projects,” Singh said.