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GOVERNMENT OF INDIA
MINISTRY OF PLANNING
LOK SABHA
UNSTARRED QUESTION NO. 4226
TO BE ANSWERED ON 18.03.2026
PROMOTION OF INDIA’S LEADERSHIP IN RENEWABLE ENERGY
4226.SHRI BASAVARAJ BOMMAI:
Will the Minister of Planning be pleased to state:
(a) the steps being taken to promote India’s Leadership in renewable
energy at the global level and the manner in which the
Government’s plans to attract foreign investment in this sector;
(b) the manner in which the Government plan to incentivize increased
private sector investment in research and development;
(c) the manner in which the Government plan to balance strategic
partnerships with both the Global South and North to strengthen
India’s economic and diplomatic position;
(d) whether any legal reforms are being considered to improve the
ease of doing business and attract foreign direct investment in
critical sectors; and
(e) if so, details thereof?
ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF
STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF
STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND
MINISTER OF STATE IN THE MINISTRY OF CULTURE
(RAO INDERJIT SINGH)
Page 1 of 4(a): The Government of India has taken several steps and initiatives to
promote the country's leadership in renewable energy at the global level
and attract foreign investment. These inter-alia include:-
1. India’s Nationally Determined Contributions (NDCs) stipulate a
target of 50% non-fossil based electric installed capacity by 2030
and it has already achieved non- fossil base electricity installed
capacity at 52%.
2. India showed global leadership in promoting adoption of
renewables by launching the International Solar Alliance (ISA),
and the Global Biofuel Alliance (GBA). Presently, ISA has 111
member countries, with another 14 countries are in process of
ratifying the ISA Framework Agreement to become full member
States of ISA Assembly. ISA aims to promote the development and
deployment of solar energy across the world.
3. India also launched the National Green Hydrogen Mission, with a
target of producing 5 million tonnes per annum by 2030 to make
India a Green Hydrogen Hub.
4. India has allowed 100% Foreign Direct Investment (FDI) under the
automatic route for renewable energy projects. The Government
has also promoted Green Energy Corridor to facilitate evacuation
of RE power where foreign investment is involved.
(b): The Ministry of New and Renewable Energy (MNRE) is providing
incentives to private sector R&D in renewable energy primarily through
the Renewable Energy Research and Technology Development (RE-
RTD) Program, which offers up to 70% financial support to industries
and start-ups for technology development. Other key initiatives include
the Production Linked Incentive (PLI) scheme for high-efficiency solar
PV modules and the newly launched Research, Development and
Innovation (RDI) Scheme. Research Development and Innovation Fund
(RDIF) is a flagship initiative under the Department of Science and
Technology (DST), Government of India. It is designed to accelerate
investment in India's R&D and Innovation ecosystem. RDI envisions to
support private sector enterprises, start-ups, and industries working in
sunrise and strategic sectors to transform ideas into globally
Page 2 of 4competitive technologies and products. Approved by the Union Cabinet
on 1 July 2025, the Scheme aims to catalyse private sector investment
in R&D with a total outlay of ₹1 lakh crore over six years.
(c): The Government has taken various steps to balance partnerships
with Global South and North to strengthen India’s economic and
diplomatic position. These inter-alia include:-
1. The Government engage with the Global South through
development cooperation, addressing shared challenges like
climate change, digital inclusion and poverty. Simultaneously, we
partner with the Global North on economic growth, technology
sharing, and policy governance. India has a strong development
partnership program with Global South countries under which the
government extends line of credits, grants as well as capacity
building training programs.
2. India is showing leadership in demonstrating that economic
growth can be achieved in a manner consistent with climate
commitments. India is also championing the concerns of the
global south, as demonstrated in COP 29. During COP 29, India
highlighted that Global North needs to do more in providing
necessary finance to enable Global South tackle climate change.
3. India launched Mission Lifestyle for Environment (LiFE) at the COP
26, which recognises that Indian culture and living traditions are
inherently sustainable. It seeks to channel the efforts of
individuals and communities into a global mass movement of
positive behavioural change in both global North & South.
4. During India’s G20 Presidency, India took the initiative to welcome
the African Union as a permanent member of the G20. Further, the
Government has pioneered several initiatives including the
International Solar Alliance (ISA), Global Biofuel Alliance (GBA),
and Coalition for Disaster Resilient Infrastructure (CDRI).
(d) & (e): India is actively implementing legal and regulatory reforms to
enhance the ease of doing business (EoDB) and attract Foreign Direct
Investment (FDI) in critical sectors. The key initiatives include
streamlining FDI policies, liberalizing sectoral caps, and simplifying
compliance through digital platforms.
Page 3 of 4• FDI Policy Revisions (2026): The Cabinet recently modified
guidelines for investments from Land Bordering Countries (LBCs)
to allow up to 10% investment under the automatic route if
beneficial ownership is below 10%, particularly aiding
manufacturing in electronic components, capital goods, and solar
cells.
• Decriminalization & Compliance: The Jan Vishwas (Amendment of
provisions) Act 2023 and other reforms have decriminalized minor
technical violations and, as of Feb 2026, over 16,000 compliances
were simplified or reduced to lower the burden on businesses.
• Labour Reforms: 29 central labour laws have been consolidated
into four Labour codes to simplify compliance, with approval
timelines for factory construction reduced from 90 days to 30
days.
• Tax Simplification: The Income Tax Act was amended to abolish
"angel tax" for start-ups and reduce taxes on foreign companies.
These reforms, including the 2025 GST changes, are aimed at
strengthening the overall investment climate and improving India's
global competitiveness.
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