Sylph Industries Ltd Management Discussions

Industry Structure and Developments

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Growth:

• The global economy remained resilient during FY 2025-26 despite geopolitical tensions, trade uncertainties and changing global financial conditions.

• Global economic growth was supported by continued investment, technological development and resilient consumer demand.

• India continued to outperform many major economies, with real GDP growth estimated at 7.4% in FY 2025-26.

Inflation:

• Inflationary pressures moderated significantly during FY 2025-26, supporting consumer purchasing power and domestic demand.

• Indias inflation remained well controlled, with average inflation at around 1.7% during April- December 2025.

• Lower food inflation and improved supply conditions contributed to the moderation in overall inflation.

Risks & Policy Backdrop:

• The key risks to the economic outlook include geopolitical tensions, global trade restrictions, commodity-price volatility and fluctuations in exchange rates.

• Government policies continued to focus on strengthening domestic manufacturing, infrastructure, investment and supply-chain resilience.

• Initiatives such as the Production Linked Incentive (PLI) schemes are expected to support manufacturing capacity, employment and Indias integration into global value chains.

INDIAN ECONOMY OVERVIEW (FY 2025-26)

• The Indian economy maintained strong growth momentum during FY 2025-26, with real GDP growth estimated at 7.4%.

• Economic growth was supported by strong domestic consumption, higher investment, manufacturing activity and continued growth in the services sector.

• The services sector remained a major contributor to economic growth, while manufacturing activity also strengthened during the year.

• Private consumption remained robust, supported by moderate inflation and improving domestic demand.

• Government initiatives focused on infrastructure development, manufacturing, digitalisation and investment are expected to support sustainable economic growth.

B. EXTERNAL ENVIRONMENT & RISKS (FY 2025-26)

• Global Indias external sector remained resilient despite global trade uncertainties and geopolitical challenges.

• Indias total exports of goods and services reached approximately US$825.3 billion in FY 2024-25, providing a strong base for external-sector performance in FY 2025-26.

• Services exports continued to provide significant support to Indias balance of payments and helped offset a part of the merchandise trade deficit.

• The current account remained manageable, supported by strong services exports and remittance inflows.

• Indias foreign-exchange reserves remained comfortable, providing a substantial buffer against external shocks.

• However, risks from global trade restrictions, geopolitical conflicts, commodity-price movements, capital-flow volatility and exchange-rate fluctuations continue to remain relevant for the Indian economy.

• Key Table: FY 2025-26 Economic Summary

Economy/Region	FY 2025-26 GDP Growth (%)	Inflation (%)
World	3.1	4.6
Advanced Econ.	1.8	2.8
EM & Dev. Econ.	3.9	5.5
United States	2.3	3.2
Eurozone	1.1	2.6
China	4.4	0.9
India	7.4	1.7

C. CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates; changes in the Government regulations; tax laws and other statutes and incidental factors.

IT INDUSTRY Introduction

The IT & BPM sector has become one of the strongest pillars of Indias economy, contributing significantly to growth, employment, and public welfare. In April 2025, the industry recorded 16% YoY growth in hiring, driven by the rising adoption of artificial intelligence, cloud modernisation, and the expansion of Global Capability Centres (GCCs). The IndiaAI Mission receives an allocation of more than Rs. 10,300 crore (US$ 1.19 billion) over five years, supported by the deployment of 38,000 GPUs. The tech and AI ecosystem employs 6 million people.

With over 76 crore citizens now connected to the internet, India is home to one of the worlds largest online populations while offering some of the lowest access costs. This has been supported by the Digital India Programme, which has expanded digital infrastructure and improved accessibility across the country. Together with growing private sector innovation and widespread adoption of digital applications, India is entering the next phase of its IT revolution. Reflecting this shift, Indias rankings improved seven places to the 38th position in the 2025 edition of the Global Innovation Index (GII), highlighting its rising global competitiveness in technology and innovation. Indias Global Capability Centre workforce is projected to rise to 3.46 million by 2030, supported by rapid adoption of artificial intelligence across roles.

Market Size

As per NASSCOM, Indias IT industry revenue has expanded from US$ 181 billion in FY19, including US$ 136 billion in exports, to an estimated US$ 315.4 billion in FY26 (till February 2026), with exports contributing US$ 246.4 billion. Indias IT exports rose 5.58% in FY26 (till February 2026) to US$ 246.4 billion from US$ 233.3 billion in FY25, with STPI-registered units contributing Rs. 10.64 lakh crore (US$ 123.05 billion), according to MeitY citing Nasscom. Export of IT services remained the largest contributor, accounting for more than 66% of total IT exports in FY 25. In FY 25, Indias top five software services export destinations were the United States (US$ 117.43 billion, 52.90%), Europe (US$ 73.26 billion, 33%) including the United Kingdom (US$ 34.41 billion, 15.50%), Asia (US$ 12.21 billion, 5.50%), Australia & New Zealand (US$ 5.33 billion, 2.40%) and Canada (US$ 2.88 billion, 1.30%). Asia, Australia & New Zealand, and Canada together accounted for about 9.20%. Within the export mix,

BPM, engineering and R&D (ER&D), and software products contributed 26% and 8% respectively in FY25.

Investments/ Developments

Indian ITs core competencies and strengths have attracted significant investment from major countries and companies.

• Google announced US$ 15 billion investment over 2026-2030 for an AI Hub and data center in Visakhapatnam, marking its largest commitment in India to advance AI capabilities and services.

• According to a Nasscom report, Indias pool of cloud professionals across diverse industries is projected to more than double, rising from 608,000 in 2021 to 1.5 million by 2025.

• India is set to invest US$ 200 billion in AI infrastructure. OpenAI has partnered with the Tata Group to develop 100 megawatts of AI capacity, with ambitions to expand to 1 gigawatt.

• Adani announced a plan to invest US$ 100 billion in AI data centers over the next decade, linking data-center buildout with AI infrastructure and renewable energy.

• Indias IT hiring is projected to grow by 7% in FY27, driven by the expansion of innovation centres by global technology companies, the availability of a strong domestic talent pool with expertise in next-generation technologies, and government-led digitalisation initiatives across multiple sectors.

• Indias cloud industry is projected to create around 14 million jobs by 2026, nearly tripling employment over a five-year period.

• In 2025, the IT and ITeS sector led investments with a total of US$ 13.1 billion, spearheaded by General Atlantics US$ 600 million infusion into consumer fintech firm PhonePe. This was closely followed by US$ 450 million raised by quick-commerce leader Zepto, anchored by the California Public Employees Retirement System (CalPERS) and supported by existing investors via a blend of primary and secondary transactions. Securing third place was Kedaara Capitals US$ 350 million investment in Impetus Technologies, a provider of data analytics and enterprise AI solutions.

• Micron Technology has inaugurated Indias inaugural semiconductor ATMP facility, backed by a US$ 2.75 billion investment, to advance assembly, testing, and R&D for AI-enabling chips.

• In November 2025, ESTIC 2025 announced a Rs. 1,00,000 crore (US$ 11.56 billion) scheme to boost private-sector research, development and innovation in India.

• Announced in November 2025, TCS will invest Rs. 57,701 crore (US$ 6.5 billion) to build long-term digital and AI infrastructure, signalling a move to boost Indias technological self-reliance.

• Reliance Industries will invest Rs. 98,000 crore (US$ 11.41 billion) to build a 1 GW AI datacentre in Andhra Pradesh, scheduled for completion by 2030.

• In November 2025, ESTIC 2025 announced a Rs. 1,00,000 crore (US$ 11.28 billion) scheme to boost private-sector research, development and innovation in India.

• Announced in October 2025, Google is set to invest about Rs. 85,890 crore (US$ 10 billion) in a 1 GW hyperscale data-centre campus at Visakhapatnam (Vizag), through which the proposed "AI City Vizag" will be anchored.

• In Q3 2025, the IT & ITES sector led funding with Rs. 28,723 crore (US$ 2.4 billion) driven by Rapido, followed by Rs. 2,131 crore (US$ 240 million) in life sciences tech firm Axtria, and Rs. 1,461 crore (US$ 170 million) in Artificial Intelligence (AI) analytics firm Fractal Analytics.

• In Q3 2025, 141 Department for Promotion of Industry and Internal Trade (DPIIT) registered startups raised venture capital funding worth Rs. 13,326 crore (US$ 1.53 billion).

• The Goa government has launched the Goa AI Mission 2027, a strategic blueprint to build an inclusive, innovation-driven artificial intelligence (AI) ecosystem in the state. The mission aligns with the Centres India AI Mission. It aims to empower citizens, strengthen governance, and fuel sector-wide innovation.

• Union Minister for Communications and Development of Northeast Region, Mr. Jyotiraditya M. Scindia, launched the artificial intelligence (AI) -powered mobile application for the upcoming India Mobile Congress (IMC) 2025, themed Innovate to Transform. The ninth edition of IMC will be held from October 8 to 11, 2025, at the Yashobhoomi Convention Centre, Dwarka, New Delhi.

• Prime Minister Mr. Narendra Modis August 29-30, 2025 visit to Japan secured over Rs. 5,96,564 crore (US$ 68 billion) in investment pledges, alongside an economic security pact covering semiconductors, critical minerals, and AI, with discussions also advancing defence collaboration through technology transfer and joint military hardware development.

• A report from the Reserve Bank of India (RBI) suggests that generative Artificial Intelligence (AI) has the potential to enhance banking operations in India by up to 46%.

• The IT & ITES industry led investments with Rs. 49,738 crore (US$ 5.75 billion) in H1 2025. The largest deal was Rs. 3,028 crore (US$ 350 million) in data analytics and enterprise AI solutions provider Impetus Technologies, followed by Rs. 2,379 crore (US$ 275 million) in Innovaccer and Rs. 2,336 crore (US$ 270 million) in e-commerce platform Meesho.

Government Initiatives

Some of the major initiatives taken by the government to promote the IT and ITeS sector in India

are as follows:

• Emphasising the priority on digital infrastructure, investments totalling approximately US$ 70 billion are already in progress in India, alongside announcements of a further US$ 90 billion. The 2026-27 Budget proposes a tax holiday until 2047 for foreign companies delivering cloud services to global customers via data centres located in India.

• The Union Budget 2025-26 allocated Rs. 20,000 crore (US$ 2.31 billion) for R&D, AI, geospatial initiatives and Atal Tinkering Labs to strengthen the innovation ecosystem and support private-sector-led research.

• The 2025-26 Budget allocates Rs. 782 crore (US$ 88.90 million) for cybersecurity measures to protect digital public infrastructure.

• The India AI Mission alone has been allocated Rs. 2,000 crore (US$ 236.4 million) in 2025-26, a significant leap from Rs. 173 crore (US$ 8.6 million) in the previous year.

• The Government has initiated a project AIRAWAT for providing a common compute platform for AI research and knowledge assimilation.

• AIKosh develops extensive datasets for AI model training, drawing from both governmental and non-governmental sources. The platform encompasses more than 5,500 datasets and 251 AI models spanning 20 sectors.

• The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on July 23, 2024, proposes an allocation of Rs. 1,16,342 crore (US$ 13.98 billion) for IT and Telecom sectors.

• In March 2024, the Government of India launched the IndiaAI Mission with an outlay of Rs 10,372 crore (US$ 1.25 billion) to foster the development of the nations overall AI ecosystem. Within less than 24 months, the IndiaAI Mission has established a solid foundation for advancing the countrys AI ecosystem.

• The government prioritizes cybersecurity, hyper-scale computing, AI, and blockchain. With data costs at Rs. 10/GB ($0.12/GB), India ranks among the worlds cheapest.

FMCG INDUSTRY Introduction

The FMCG sector in India has expanded steadily, supported by consumer-driven growth and higher product prices, particularly for essential goods. It provides employment to around three million people, accounting for approximately 5% of total factory employment in the country. As Indias fourth-largest sector, FMCG plays a vital role in the economy, with household and personal care products alone contributing 50% of total FMCG sales.

The industry is projected to maintain healthy momentum, supported by rising disposable incomes, a young consumer base, increasing brand awareness, and favourable government initiatives and policies. Household FMCG spending in India rose 8% to Rs. 17,792 crore (US$ 2.07 billion) by April 2025 and is expected to increase further to around Rs. 20,000 crore (US$ 2.27 billion) by the end of 2025, driven by higher consumption across staples as well as non-staples. More importantly, Indias vast middle-class population, which is larger than the total population of the USA, and its median age ofjust 27 are shaping

consumption trends. Rising aspirations, greater financial inclusion, and social safety nets are further fuelling demand.

The sector continues to demonstrate resilience, with companies focusing on efficient manufacturing, supply chain management, consumer insights, and digital-first communication strategies to withstand disruptions and create long-term value. According to NielsenIQ, Indias FMCG market grew 13.9% in value and 6% in volume in Q1 FY26, led by rural demand, smaller pack sizes, and e-commerce growth. Key companies also posted steady performance in the same quarter. Dabur expected single-digit revenue growth, Nykaas beauty segment registered mid-20% GMV growth, Tata Groups Trent expanded 20%, and Kalyan Jewellers rose 31%, supported by improving urban sentiment and easing inflation.

Market Size

The Indian FMCG market generated revenue of Rs. 25 lakh crore (US$ 289.1 billion) in 2025 and is expected to grow at a CAGR of 17.3% through 2025-30, reaching nearly US$ 642.87 billion by 2030. In 2025, the urban segment contributed 62% while rural India accounted for more than 38% of annual FMCG sales, highlighting the importance of both markets in driving growth.

FMCG household consumption across Indian cities exhibited a clear shift toward metro-driven concentration rather than uniform city-wise distribution, with e-commerce accounting for approximately 14% of FMCG sales across metros and increasing further to nearly 18% in the top 8 cities, significantly higher than the ~6% urban average. Notably, southern metro clusters emerged as the most digitally advanced consumption hubs, crossing ~21% e-commerce penetration, underscoring a strong shift toward online-led household purchasing behaviour in select urban pockets, even as overall urban FMCG growth remained relatively moderate in the range of ~2.3% to 4.6%, reflecting a structurally uneven but increasingly digital-first consumption landscape across Indias cities.

Leading FMCG players are leveraging rural Indias potential. ITC expanded rural FMCG reach via strong distribution networks, Dabur strengthened rural presence through affordable packs, and Zydus Wellness focused on rural health demand, as rural FMCG growth (~3.6%) remained a key driver versus urban (~4.6%),

supporting overall FY26 consumption stability. Dabur derives 45-50% of its revenue from rural markets, reaching over 1,31,000 villages and 1.42 million outlets. Hindustan Unilever generates 35-40% of its revenue from rural areas, supported by its Shikhar app, which has 1.4 million retailers on board and a 70% monthly active user rate.

Investments

• From April 2000 to December 2025, Indias food processing industry has received cumulative FDI inflows of approximately Rs. 1,10,459.97 crore (US$ 15.86 billion), reflecting steady growth in foreign investment in the sector.

• In February 2026, Hindustan Unilever plans to invest Rs. 2,000 crore (US$ 227.27 million) over two years to expand manufacturing in premium beauty, wellbeing, and home care segments,

enhancing supply chain agility, leveraging automation, and capitalizing on rising premiumization demand in Indias FMCG market.

• In January 2026, Nestle India reported a 46% YoY increase in Q3 FY26 profit to US$ 115.19 million (Rs. 1,018 crore), driven by tax cuts boosting consumer demand. Revenue rose ~19% with strong volume growth across packaged foods, supported by product launches, rural expansion, and quick-commerce channels.

• In January 2026, Marico entered a strategic deal with PVR INOX to acquire its 4700BC premium snacks brand for Rs. 226.8 crore (US$ 25.77 million), expanding its FMCG portfolio and strengthening its presence in packaged snacking.

• In January 2026, Dharampal Satyapal Group ended its collaboration with Swiss chocolate brand Laderach in India, marking a strategic shift in its premium confectionery segment and redefining its partnership-led growth approach.

• In December 2025, Reliance Consumer acquired a majority stake in Udhaiyams Agro Foods (FMCG staples & snacks expansion), strengthening Reliances packaged foods and FMCG distribution portfolio.

• In December 2025, HUL reinforced its premium FMCG investment strategy in beauty & personal care segments, focusing on high-growth categories to offset slow volume growth in mass products.

• In November 2025, Reliance Consumer Products Ltd (RCPL) entered Indias pet care market with the launch of Waggies, offering science-backed, affordable nutrition for pets.

• In November 2025, PepsiCo India launched Red Rock Deli, a gourmet chips brand, and LOreal introduced La Roche-Posay skincare products in India to expand their global offerings.

• In September 2025, Amazon expanded its quick commerce service, Amazon Now, to Mumbai, offering groceries, essentials, and over 40,000 FMCG items with rapid delivery.

• In August 2025, Reliance Industries announced plans to invest Rs. 40,000 crore (US$ 4.7 billion) over the next three years to build Asias largest integrated food parks with AI-driven automation, robotics, and sustainable technologies.

• ITC Ltd. plans Rs. 20,000 crore (US$ 2.33 billion) investment over the next five to six years, focusing on FMCG growth, margin expansion, new product launches, horticulture, and AI- driven operations.

• Reliance Consumer Products Limited plans to invest Rs. 8,000 crore (US$ 929.3 million) over the next 12-15 months from September 2025 to expand its beverage manufacturing capacity across 10-12 new plants nationwide.

• In September 2025, Adani Wilmar acquired G.D. Foods (Tops ketchup brand) in a Rs. 603 crore (US$ 70 million) deal in stages, 80 % upfront and remaining 20 % over three years, to expand

its value-added food portfolio, adding eight new categories including sauces, jams, pickles and instant mixes.

• In August 2025, Reliance Consumer Products Limited (RCPL) acquired a majority stake in Naturedge Beverages (Shunya herbal-functional drinks), marking its entry into the fast-growing herbal and functional beverages segment.

• In July 2025, Chaudhary Group and Bikaji Foods form a 50:50 joint venture to launch Indian snacks in Nepal, setting up local production and creating thousands of jobs in the FMCG market.

• In May 2025, Rasna acquired the Jumpin ready-to-drink beverage brand from Hersheys India, valued at approximately Rs. 350 crore (US$ 40.32 million), positioning itself to target Rs. 1,000 crore (US$ 116.2 million) in revenue over the next two years.

• In 2025, Horlicks from Hindustan Unilever launched the Plus range for women, mothers, and men.

• Reliance Consumer, which relaunched Campa in 2023, expanded in 2025 with 15-20 variants spanning cola, nectar, energy, and sports drinks, including regional flavours.

• In summer 2025, AI drove 50% of new FMCG launches in India, influenced pricing in 60% of markets, boosted cold beverages and packaged foods by 80%, quick commerce presence by 30%, and Kombucha listings by 150% without discounts.

• In 2024, Marico launched the Kaya Youth oxy-infusion range with an AI-based analyser to measure skin oxygen levels and recommend personalised routines.

• In August 2024, Emami Limited acquired full ownership of The Man Company for Rs. 177.63 crore (US$ 21 million).

• In July 2024, Chairman and Managing Director Mr. Sanjiv Puri said ITC Ltd. has come up with a Rs. 20,000 crore (US$ 241.55 million) capex plan for the mid-term to expand its capacities in fast moving consumer goods (FMCG), paperboard and other businesses.

Government Initiatives

Some of the major initiatives taken by the Government to promote the FMCG sector in India are as follows:

• Indias PLI schemes, with Rs. 1.91 lakh crore (US$ 21.70 billion) total outlay have driven over Rs. 2.16 lakh crore (US$ 24.55 billion) investments and significant production growth, strengthening manufacturing, including food processing and FMCG supply chains.

• In Union Budget 2026, the government continued strengthening PLI schemes, proposing Rs. 40,000 crore (US$ 4.55 billion) allocation for electronics and considering expansion into emerging sectors like AI and advanced manufacturing.

• The Union government approved a new PLI scheme for the food processing sector, with a budget outlay of Rs. 109 billion (US$ 1.46 billion). Incentives under the scheme will be disbursed for six years to 2026-27.

• The governments initiative to promote millets for its health benefits would increase the consumption and production of the millets in the nation. To support this, the government declared that the Indian Institute of Millet Research in Hyderabad will become a worldwide centre of excellence for the exchange of best practices, knowledge, and innovations.

• The PLI Scheme for Food Processing Industries (PLISFPI), with a budget of Rs. 10,900 crore (US$ 1.3 billion) for 2021-27, has approved 278 units of 170 applicants, creating 3.4 lakh jobs, adding 35 lakh MT annual capacity, and disbursing Rs. 1,727 crore (US$ 200.6 million) in incentives till June 2025.

• The scheme has attracted Rs. 9,032 crore (US$ 1.04 billion) in investments, generated Rs. 3,80,000 crore (US$ 43.95 billion) in sales till March 2025, and significantly boosted local raw material procurement, supporting farmer incomes.

Solar

Introduction

As of May 2026, Indias installed renewable energy capacity, including large hydro projects, stood at 282.75 GW, underscoring the countrys continued progress in expanding its clean energy portfolio. India ranked 3rd globally in renewable energy installed capacity, reaching 250.52 GW as of December 2025, according to IRENA Renewable Energy Statistics 2026. China leads with 2,258.02 GW, followed by the United States at 467.92 GW, while India remains ahead of countries such as Brazil (228.20 GW) and Germany (199.92 GW). India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double. India has officially surpassed Japan to become the worlds third-largest solar energy producer. According to data from the International Renewable Energy Agency (IRENA), India generated 1,08,494 GWh of solar power, exceeding Japans 96,459 GWh.

Market Size

Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 16.84% between FY16 and FY26. India has 223.2 GW of renewable energy capacity in FY26.

As of May 31, 2026, the countrys total installed power generation capacity stood at 542 GW, of which approximately 291 GW (53.8%) was contributed by non-fossil sources, including solar, wind, hydro, small hydro, nuclear, and bio power, reflecting the countrys continued progress towards a cleaner energy mix. Indias wind energy sector is making significant strides towards achieving the ambitious target of 100 GW of production by 2030, according to the Indian Wind Turbine Manufacturers Association (IWTMA). The country currently has an installed wind energy capacity of over 50 GW and an annual domestic manufacturing capacity of over 18 GW for wind turbines and components.

Investments/ Developments

Some major investments and developments in the Indian renewable energy sector are as follows:

• On June 4, 2026, the Ministry of New and Renewable Energy (MNRE) announced that the PM Surya Ghar: Muft Bijli Yojana had crossed 40 lakh beneficiary households within two years of its launch. More than 33 lakh rooftop solar systems, with a cumulative capacity exceeding 12 GW, had been installed by May 2026, while over one crore households had registered under the scheme. The Government has set a target of reaching 75 lakh rooftop solar installations by December 2026, reinforcing Indias transition towards distributed renewable energy and energy self-reliance.

• The Government of India is accelerating rooftop solar adoption under the PM Surya Ghar Muft Bijli Yojana, targeting installations in one crore households by 2026-27, with 26.19 lakh systems installed as of March 19, 2026. The scheme has disbursed Rs. 17,967.53 crore (US$ 2.03 billion) as Central Financial Assistance, supported by a fully digital, time-efficient subsidy mechanism with an average processing time of around 15 days.

• In FY26, solar power generation reached 174.75 billion units (BU), up from 144.15 BU in FY25, registering a strong year-on-year growth of 21.23%. During the first two months of FY27 (April-May 2026), solar power generation increased to 42,483.60 million units (MU) from 30,117.14 MU in the corresponding period last year, reflecting robust year-on-year growth of 41.06%. In May 2026 alone, solar power generation stood at 21,584.00 MU, highlighting the continued expansion of Indias solar energy capacity and generation.

• Indias power sector has witnessed significant expansion, with total installed capacity reaching 542 GW as of May 2026. The National Electricity Plan (2023-32) outlines an investment of Rs. 9.15 lakh crore (US$ 103.55 billion) to meet a projected peak demand of 458 GW by 2032.

• The Government of India has approved the Small Hydro Power (SHP) Development Scheme for 2026-31 with an outlay of Rs. 2,584.60 crore (US$ 0.29 billion) to support installation of ~1,500 MW capacity across states. The scheme is expected to catalyse investments of around Rs. 15,000.00 crore (US$ 1.70 billion), particularly in hilly and North Eastern states, while promoting decentralised renewable energy generation.

• India recorded FDI equity inflows of Rs. 5,16,936 crore (US$ 58.85 billion) in FY26, registering an 23% year-on-year increase, compared to Rs. 4,21,929 crore (US$ 50.02 billion) in FY25. The non-conventional energy sector attracted FDI inflows of Rs. 26,412 crore (US$ 3.02 billion), accounting for approximately 5.1% of the total FDI received during FY 26 and remaining among the key sectors attracting foreign investment.

• Indias renewable energy sector is undergoing a significant transformation, driven by its ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030. As of December 2025, around 23.90 lakh households had installed rooftop solar systems with a capacity of ~7 GW, supported by subsidy disbursements of Rs. 13,464.60 crore (US$ 1.52 billion) under the PM Surya Ghar scheme

• Indias rooftop solar programme under PM Surya Ghar has witnessed accelerated progress, with over 9.56 GW of rooftop solar capacity installed as of March 2026. This marks a significant increase from earlier figures, with the scheme rapidly expanding beyond 23.96 lakh households covered as of December 2025, indicating strong momentum towards the target of one crore solar-powered homes.

• According to Department of Promotion of Industry and Internal Trade (DPIIT) from April 2000- June 2025 non-conventional energy sector attracted Rs. 2,04,341 crore (US$ 23.04 billion) cumulative FDI inflows in India.

• India and the Netherlands are set to strengthen their clean energy collaboration by establishing a green and digital corridor between Indian ports and the Port of Rotterdam.

• On November 19, 2025, KPI Green Energy Ltd and Inox Solar Ltd signed an MoU to jointly develop 2.5 GW of solar and hybrid renewable-energy projects across India.

• On October 22, 2025, Coal India Limited signed a Memorandum of Understanding with Indian Institute of Technology Madras to establish a "Centre for Sustainable Energy" focused on developing low-carbon technologies, repurposing coal mines and building human capital for Indias clean-energy transition.

• On September 23, 2025, a report by National Institute of Solar Energy (NISE) estimated that India has a feasible ground-mounted solar photovoltaic potential of 3,343.37 GWp across 27,571 sq km of wasteland, sharply up from the 748.98 GWp estimated in 2014.

• NHPC Ltd will commission 2,170 MW of new hydropower capacity by the end of FY26, including the 2,000 MW Subansiri Hydropower Project in Arunachal Pradesh, which will become the largest hydroelectric project in India once fully operational.

• Avaada Group announced on April 29, 2025, that it has signed an initial agreement with the Maharashtra government to develop two pumped storage projects in the state, with a combined capacity of 3,600 megawatts (MW). The projects, which include the 2,400 MW Pawana Falyan and the 1,200 MW Sirsala, will require a cumulative investment of Rs. 15,100 crore (US$ 1.77 billion). As stated by the company, these initiatives are expected to create over 3,800 direct employment opportunities.

• India is empowering startups and MSMEs to scale up clean energy solutions. With innovation support from the Ministry of New and Renewable Energy, smaller enterprises are being positioned as key drivers of energy transformation through decentralised and efficient technologies.

• According to Union Minister of Commerce and Industry, Mr. Piyush Goyal, Indias renewable energy capacity has reached 227 GW, marking a 4,000% surge in solar capacity. He also noted that India is likely the first G20 nation to meet its Paris Agreement NDC targets.

• Over the last few years there has been an increase in the percentage contribution of renewable energy to total installed capacity. In 2013-14, the contribution was 12.92%, which increased to 45.50% as of March 2025.

• India is expected to add 32 GW of renewable capacity in 2025, up from 28 GW in 2024, according to Moodys-owned Investment Information and Credit Rating Agency (ICRA).

• Indias share of renewable energy in total foreign direct investment (FDI) inflows rose from about 1% in FY21 to around 8% in FY25. The renewable energy sector attracted US$ 3.4 billion in FDI in the first three quarters of FY25, nearly matching the total FDI for the entire FY24 at US$ 3.7 billion, reflecting growing global investor interest in Indias clean energy transition.

• The National Green Hydrogen Mission is progressing with a Rs. 19,744 crore (US$ 2.26 billion) outlay. It includes the allocation of 3,000 MW electrolyser capacity and approvals for 8.6 lakh tonnes per annum of green hydrogen production, reinforcing Indias push towards industrial decarbonisation and energy security.

• Indias renewable energy sector posted record-breaking growth in the H1 2025, adding 22 gigawatts (GW) of capacity, up 56% YoY, according to data from the Central Electricity Authority. This surge has pushed the countrys total clean energy capacity, including large hydropower and nuclear, above that of fossil fuels for the first time.

• India is set to invest over US$ 360 billion in renewable energy and infrastructure by 2030, with US$ 190 billion to US$ 215 billion needed to achieve 500 GW of renewable capacity. An additional US$ 150 billion to US$ 170 billion will be required for electricity transmission and storage.

• Indias renewable energy sector has attracted significant foreign direct investment (FDI), amounting to Rs. 1,59,959 crore (US$ 21.90 billion) from April 2000 to March 2025.

• According to Union Minister for New and Renewable Energy, Mr. Pralhad Joshi, India attracted Rs. 42,000 crore (US$ 4.88 billion) in clean energy FDI in 2023 alone, contributing to a cumulative FDI inflow of over Rs. 1,60,000 crore (US$ 18.60 billion) since 2020. In Q1 2025, clean energy investments soared 7.7 times YoY to Rs. 84,309 crore (US$ 9.8 billion).

• Indias renewable energy sector is set to attract over US$ 250 billion in investments, with solar PV projects expecting US$ 15.5 billion and battery manufacturing US$ 2.7 billion by 2030.

• The Cabinet has approved a Rs. 1 lakh crore (US$ 11.41 billion) Research, Development and Innovation Fund. Union Minister Mr. Piyush Goyal highlighted its potential to rival Rs. 6-7 lakh crore (US$ 68.47-79.88 billion) R&D investments in advanced economies, leveraging Indias cost advantages.

• The Union Budget for 2025-26 has notably enhanced allocations for the renewable energy sector, with budget estimates for MNRE totalling Rs. 256.49 crore (US$ 3.03 billion), a 39% increase over last years Rs. 19,100 crore (US$ 2.26 billion).

• 59 solar parks with an aggregate capacity of 40 GW have been approved in India. Solar Parks in Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW) are among the top 5 operational solar parks of 7 GW capacity.

• The worlds largest renewable energy park of 30 GW solar-wind hybrid capacity is under installation in Gujarat.

• India offers significant opportunities for investments in the RE sector, with US$ 196.98 billion worth of projects underway.

• Wind energy has an offshore target of 30 GW by 2030, with 3 potential sites identified.

• India aims to become a global wind power hub, with policy support driving local manufacturing and a target of capturing 10% of global wind energy demand by 2030.

• BPCL plans US$ 1.19 billion (Rs. 10,029 crore) for green energy, targeting 2 GW by 2025, 10 GW by 2035, and 7,000 EV chargers in five years.

• State-owned power giant NTPC announced on February 24, 2025 that it has signed preliminary agreements to invest over Rs. 2 lakh crore (US$ 23.6 billion) in a range of renewable energy projects in Madhya Pradesh, including solar, wind, pumped hydro storage, non-fossil fuel-based initiatives, and other carbon-neutral ventures.

• NTPC has announced its plan to invest about Rs. 80,000 crore (US$ 9.13 billion) in renewable energy projects in Telangana, focusing on solar and wind projects.

• NLC India Ltd secured a Letter of Award from NTPC for a 450 MW wind-solar hybrid project, enhancing its hybrid capacity to 600 MW and supporting its 10 GW renewable energy target by 2030.

• Avaada Group signed agreements with the Maharashtra government for 3,600 MW pumped storage projects and with the Bihar government for Rs. 5,000 crore (US$ 570.58 million) in renewable investments.

• Indian renewable energy firm SAEL Industries Ltd will invest Rs. 8,200 crore (US$ 935.75 million) to build a 5-gigawatt (GW)-per-year integrated solar cell and module manufacturing facility in the northern state of Uttar Pradesh.

• In February 2025, Emmvee Group, a Bengaluru-based manufacturer of solar photovoltaic panels, announced that it will invest Rs. 15,000 crore (US$ 1.7 billion) to establish a manufacturing facility and generate 10,000 jobs.

• Ayana Renewable Power Pvt Ltd plans to set up 2 GW of renewable projects with Rs. 12,000 crore (US$ 1.53 billion) in Karnataka.

• Radiance Renewables and the UKs Private Infrastructure Development Group formed Radiance InfraCo Renewables to develop greenfield hybrid projects in India.

• India and the Netherlands will establish a green and digital corridor between Indian ports and the Port of Rotterdam.

• On December 4, 2023, Andhra Pradesh announced Rs. 6,600 crore (US$ 794 million) clean energy and infrastructure plans, including 750 MW and 100 MW solar projects, substations, and EV initiatives.

Government initiatives

Some initiatives by the Government of India to boost Indias renewable energy sector are as follows:

• The Union Cabinet has approved the Small Hydro Power (SHP) Development Scheme for 202631 with an outlay of Rs. 2,584.60 crore (US$ 0.29 billion), aimed at installing ~1,500 MW of capacity across states. The scheme focuses on decentralised renewable energy, particularly in hilly and North Eastern regions, and is expected to catalyse investments of around Rs. 15,000.00 crore (US$ 1.70 billion).

• The Union Budget 2026-27 significantly strengthens Indias renewable energy push, with the Ministry of New and Renewable Energy (MNRE) allocation reaching Rs. 44,614.67 crore (US$ 5.05 billion), reflecting a 40.52% increase over 2025-26 Budget Estimates of Rs. 31,749.38 crore (US$ 3.75 billion).

• The allocation for the National Green Hydrogen Mission has been retained at Rs. 600 crore (US$ 67.90 million) in the Union Budget 2026-27, indicating continued government support towards developing a domestic green hydrogen ecosystem. The sustained funding is expected to facilitate pilot projects, strengthen electrolyser manufacturing capacity, and promote research and innovation across the value chain.

• Indias Production Linked Incentive Scheme for High Efficiency Solar PV Modules (PLI) has led to 18.5 GW of module capacity, 9.7 GW of solar cell capacity and 2.2 GW of ingot-wafer capacity being established as of June 30, 2025. The program has awarded a total of 48 GW of module manufacturing capacity.

• The government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost manufacturing of high-efficiency solar modules.

• The Indian governments commitment to reaching net-zero emissions by 2070 and increasing its renewable energy target to 500 GW by 2030 at the COP26 summit has provided great support to the industry and spurred unprecedented growth.

• Under the PM Surya Ghar Muft Bijli Yojana, the Government of India aims to install rooftop solar plants in one crore households by 2026-27. As of July 2025, around 16.51 lakh households have already benefited from these installations, marking steady progress toward the target of expanding clean and affordable energy access.

• Under the Ministrys skill development programmes, Suryamitra, V ayumitra, and Jal-urj a Mitra, over 31,829 local youth and technical workers have already been trained and placed.

• Under the scheme for the Development of Solar Parks and Ultra-Mega Solar Power Projects, eight solar parks with a cumulative capacity of 4,248 MW have been sanctioned in Madhya Pradesh, further advancing Indias clean energy goals.

• Proposed solar cities and parks: The Solar Park Scheme, launched in December 2014, initially targeted 20,000 MW and was expanded to 40,000 MW by March 2017. By February 2025, 55 solar parks were approved across 13 states with a total sanctioned capacity of about 39,958 MW. Approximately 12,396 MW capacity has been installed in 24 parks, and 13,896 MW projects are operational in 26 parks. Among these, 18 parks (10,856 MW) are fully developed, and 8 parks (10,043 MW) are partially developed, with about 10,756 MW commissioned and another 3,140 MW running in partially developed parks.

• The government is supporting floating solar, canal-top solar, agrivoltaics, and renewable projects in tribal and remote regions. These efforts optimise land use and bring clean energy to under-served areas, driving inclusive and sustainable energy development.

• To strengthen grid reliability, the government launched a Rs. 5,400 crore (US$ 616.23 million) Viability Gap Funding scheme for 30 GWh of Battery Energy Storage Systems (BESS). This initiative is expected to attract investments worth Rs. 33,000 crore (US$ 3.77 billion) and support Indias renewable energy integration.

• The Ministry of New and Renewable Energy (MNRE) has proposed the establishment of a 13,000 MW renewable energy (RE) capacity along with a 12,000 MWh Battery Energy Storage System (BESS) in Ladakh. On October 18, 2023, the Cabinet Committee on Economic Affairs approved the construction of an Inter-State Transmission System (ISTS) to facilitate the power evacuation and grid integration of these RE projects in Ladakh.

Government plans to invest Rs. 9,12,000 crore (US$ 107.89 billion) in power transmission infrastructure by 2032 to boost capacity and support growing electricity demand.