Is 2025 the perfect time to invest in India’s green finance stocks?

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Subscribe to enjoy similar stories. The global shift towards green energy is accelerating, and India is no exception. As the country gears up to meet its ambitious renewable energy goals, its financial sector is playing an increasingly important role in funding this transition.

The rise of green finance – financial investments aimed at supporting environmentally friendly and sustainable projects – has become a crucial factor in advancing India's renewable energy goals. With India committed to deriving 50% of its power generation capacity from non-fossil-fuel sources by 2030 and various financial institutions and companies pledging ₹32 trillion for renewable energy projects by then, 2025 presents a significant opportunity for investors. Let’s delve into why.

India is set to connect a record-breaking 35 gigawatts (GW) of solar and wind energy capacity to its grid by the end of FY25. This would be an impressive increase, considering total renewable energy capacity was 153 GW as of August 2024. In the first five months of the fiscal year (April-August), 10 GW was added, highlighting the pace at which renewable energy infrastructure is growing.

Also read: Five stocks rallying amid market sell-off In the first quarter of the financial year, 71.5% of the newly installed 13,700 megawatts of power generation capacity came from renewable energy sources. This signals a strong acceleration towards India's long-term target. Solar energy in particular is expected to gain momentum after a slowdown.