India’s Green Economy Is Growing Faster Than Asia

India has emerged as one of Asia’s fastest-growing green economies, generating approximately US$110 billion in green revenues in 2025, according to a report by the London Stock Exchange Group (LSEG). The report highlights India’s rapid expansion in clean technologies, renewable energy, and sustainable industries, driven by strong policy support and increasing investments.

Although China and Japan continue to lead Asia’s green economy in overall size, India has recorded one of the region’s highest growth rates, strengthening its position as a key player in the global transition to a low-carbon economy.

India’s Green Economy: Overview

India Among Asia’s Fastest-Growing Green Economies

According to the LSEG report, India’s green economy has expanded rapidly over the past five years, registering a 20% compound annual growth rate (CAGR) in green revenues. This growth significantly exceeds both the Asian average of 12% and the global average of 10% during the same period.

The report notes that India’s progress has been supported by strong investments in renewable energy, clean technology manufacturing, and sustainable infrastructure, making the country one of the fastest-growing green markets in Asia.

India’s Leadership in Green Sectors

While India’s overall green economy remains smaller than those of China and Japan, it has established a dominant position in several specialized sectors.

According to the report:

• India accounts for 87% of Asia’s green revenues in biogas energy equipment.
• The country contributes 75% of Asia’s green revenues from advanced irrigation systems and devices.

These sectors demonstrate India’s growing competitiveness in sustainable technologies that support agriculture, energy security, and climate resilience.

Clean Energy Investment Gains Momentum

The report also highlights India’s strong investment momentum in clean energy.

Key highlights include:

• Around US$100 billion invested in clean energy.
• India emerged as the second-largest clean energy investment destination in Asia, after China.
• Investments continue to support renewable power generation, green manufacturing, and sustainable infrastructure development.

Factors Driving India’s Green Growth

Several factors have contributed to India’s rapid green economy expansion:

• Increasing renewable energy capacity.
• Government support for clean energy initiatives.
• Growth in solar and wind power.
• Expansion of green manufacturing.
• Investments in sustainable agriculture technologies.
• Rising demand for environmentally friendly products and services.

These developments are helping India strengthen its position in global sustainable development.

Significance of the Report

The LSEG report indicates that India’s green economy is becoming an important driver of economic growth while supporting the country’s climate goals.

The rapid expansion of green industries is expected to:

• Generate employment opportunities.
• Promote technological innovation.
• Reduce carbon emissions.
• Strengthen energy security.
• Enhance India’s competitiveness in global green markets.

Key Highlights

• India generated US$110 billion in green revenues during 2025.
• Green revenues grew at a 20% CAGR over the last five years.
• Growth outpaced Asia’s average (12%) and the global average (10%).
• India accounts for 87% of Asia’s biogas equipment revenues.
• The country contributes 75% of Asia’s advanced irrigation technology revenues.
• India attracted around US$100 billion in clean energy investments, ranking second in Asia after China.