Lok Sabha Question No. 4226 (UNSTARRED), answered on 2026-03-18
Subject: Promotion of India's Leadereship in Renewable Energy
Ministry: PLANNING
Asked by: Shri Basavaraj Bommai

## 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)

(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  (RERTD) 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

competitive 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.

- 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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