Foreign Direct Investment: Prime Minister Narendra Modi’s big push to increase the generation of renewable energy in the country has received foreign direct investment worth $5 billion during his first tenure. Prime Minister Modi has set an ambitious target of generating 175 gigawatts of renewable energy by 2022 when India completes 75 years of its independence from the British rule. However, such an ambitious target will require an investment of $30 billion per year.
Economic Survey released early this month has estimated that the country will need $80 billion investment in the sector in the next three years.
Given the massive requirement for the funds, the government has opened the sector for 100% foreign direct investment through automatic route. However, the current pace of foreign direct investment coming in the sector is just a fraction of total investment requirement.
According to the latest official data, the country received $616 million in FY 2014-15. However, the next year it went up by over 26% to $777 million. In 2016-17, there was a nominal increase in the FDI inflows coming in the renewable energy sector as it touched $784 million.
In the next two years, the country received significantly higher amount of foreign direct investment in the renewable energy sector. In 2017-18, the total foreign direct investment in the sector topped the figure of $ 1 billion for the first time. India received $1204 million in that year. Last year, the country received FDI worth $1,446 million in the green energy sector, an increase of over 20%.
The total FDI inflow in the country during 2014-15 to 2018-19 was $4.82 billion.
Economic Survey 2018-19 has estimated that the country will need investment worth $80 billion by 2022 and an additional $250 billion investment between 2023 to 2030.