India’s wind energy sector is gaining momentum, underpinned by strong policy backing, a rising demand for clean energy and an ambition to meet global climate commitments. In 2024-25, the country added 4.1 GW of new wind capacity. As of May 2025, the cumulative installed wind power capacity has reached nearly 50 GW, as per the Ministry of New and Renewable Energy (MNRE). Much of this recent capacity addition has been concentrated in the leading wind-rich states such as Gujarat, Karnataka and Tamil Nadu. These additions mark a key step toward the country’s target of achieving 500 GW of non-fossil fuel-based capacity by 2030 and reaching net-zero emissions by 2070.
Recently, the Global Wind Energy Council released three reports on the global wind power sector, covering the Indian market as well. These reports are the Global Wind Report 2025; Financing Offshore Wind in APAC: Assessing the Cost Competitiveness of Offshore Wind; and An Industry Perspective on Localisation: Pro-business Measures to Drive Local Industrial Development.
This article provides insights into how India’s wind energy landscape is evolving and the road ahead based on these reports…
Onshore wind
Onshore wind power continues to form the backbone of India’s wind energy profile. The onshore segment is being propelled by new-age auctions, enhanced transmission planning and sector-specific renewable purchase obligations. The government has set an auction target of 10 GW of onshore wind annually between 2023 and 2027. The strategy is already bearing fruit, with about 27.3 GW of capacity awarded in 2024 across standalone wind and hybrid tenders. States such as Gujarat, Tamil Nadu, Maharashtra, Rajasthan and Karnataka have taken the lead in auction activity, driven by favourable wind conditions, availability of land and proactive state-level policies.
Modernisation efforts in the transmission network, such as green energy corridors and high voltage direct current lines, are key enablers for integrating more wind energy into the grid. The repowering of ageing wind farms, particularly in Tamil Nadu, Gujarat and Maharashtra, is also expected to unlock substantial generation potential. These early wind farms, installed with low-capacity turbines and now nearing the end of their lifecycle, present an opportunity for replacement with modern, high-capacity machines, significantly increasing output on existing sites.
In parallel, India’s commercial and industrial (C&I) segment is emerging as a significant driver of wind power demand. Rising power costs and the pressure to decarbonise operations are prompting C&I consumers to adopt wind and hybrid power through open access and bilateral agreements. However, challenges related to land acquisition, delayed transmission projects and auction bottlenecks that affect the signing of power purchase agreements continue to impact the pace of project execution. Addressing these through clear land policies, streamlined approval processes and faster PPA finalisation is essential for sustained growth.
Offshore wind
Amidst this onshore expansion, the offshore wind segment is also slowly gaining momentum through policy initiatives. The year 2024 marked a turning point with the announcement of a 4 GW offshore wind tender in Tamil Nadu and a 500 MW project off the coast of Gujarat. Recognising the high capital intensity and nascent ecosystem of offshore wind, the Indian government introduced a Rs 74.53 billion viability gap funding scheme aimed at supporting 1 GW of offshore wind capacity and associated port infrastructure. This is a crucial first step toward tapping the country’s vast offshore wind potential. However, scaling up offshore wind will require much more: well-developed port facilities, specialised installation vessels, a domestic offshore wind supply chain, favourable financing options including concessional and blended finance, and a strong, transparent policy framework.
The global context for offshore wind offers important lessons. In 2023, the global offshore wind industry added 11 GW of new capacity, a 24 per cent year-on-year increase, bringing the total capacity to 75 GW. Yet, the sector has also faced considerable macroeconomic pressures over the past three years. Rising material costs, inflation and higher interest rates have tested the financial viability of many offshore projects. Still, mature offshore wind markets in countries such as the UK, Germany and China have shown that economies of scale, policy consistency and supply chain maturity can significantly reduce the levelised cost of electricity. Globally, the introduction of larger turbines, for instance, has played a central role in reducing installation and maintenance costs, enabling developers to harness more wind at lower costs per MW.
However, in emerging markets like India, the offshore segment is still navigating early-stage challenges such as regulatory ambiguity, infrastructure gaps and supply chain limitations. High local content requirements, if implemented too early or without adequate manufacturing readiness, could drive up costs and delay projects. Developers often view such requirements as investment risks unless paired with strategic support mechanisms, including capacity-building and phased manufacturing incentives. Achieving cost competitiveness in offshore wind typically occurs after the first 2-3 GW of capacity is developed, allowing the market to gain experience, build investor confidence and reduce real and perceived risks. India must, therefore, carefully design its offshore wind roadmap, using pilot projects and public-private partnerships to establish early benchmarks while building the necessary industrial and regulatory ecosystem.
Manufacturing capacity and localisation push
A strategic element of India’s wind energy journey is its robust wind equipment manufacturing base. India is already the second largest hub in the Asia-Pacific for onshore wind turbine assembly and component manufacturing, with over 17 manufacturers exporting to regions such as Europe, Australia, Brazil and the US. However, the production capacity of key components like blades and gearboxes remains lower than that of fully assembled turbines, reflecting a reliance on imports for critical parts.
To address this gap, the MNRE issued a draft amendment in April 2025, proposing new criteria for enlisting wind turbines under the Revised List of Models and Manufacturers. The proposed norms introduce non-tariff barriers aimed at protecting domestic manufacturing and ensuring cybersecurity resilience. One of the key requirements is that at least 64 per cent of the turbine’s component cost must be met through domestic sourcing.
While these reforms are intended to deepen India’s wind manufacturing ecosystem, the short-term implications are expected to be challenging. The realignment of supply chains to meet local sourcing norms may stretch Indian turbine manufacturers, especially in areas where domestic capacity is currently limited. Gearboxes, generators and tower flanges are among the components expected to be in short supply. The government has provided a six-month transition period for some components, but industry stakeholders argue that more time and support mechanisms may be needed for a smooth and effective transition. In the long run, however, such measures could reduce dependence on imports, foster job creation and improve India’s positioning as a global wind manufacturing leader.
A critical component of this manufacturing push is workforce development. India has already made significant progress in cultivating a skilled renewable energy workforce through initiatives such as the Vayumitra training programme run by the National Institute of Wind Energy (NIWE). Established in 1998, the NIWE has trained thousands of technicians, engineers and project developers, working in tandem with industry partners, academia and the Skills Council for Green Jobs. These programmes are vital to ensuring that India not only builds wind turbines but also sustains and services them efficiently over the long term.
The way forward
To align with its long-term energy transition goals, India must scale its annual wind energy installations by at least 10 GW by 2030. This ambition is reflected in the National Electricity Plan 2022-32, which projects the installed wind capacity to reach 73 GW by 2026-27 and 122 GW by 2031-32.
This ambitious target underscores the need for continuous policy evolution, integrated transmission planning and dynamic auction strategies that support diverse business models, from utility-scale and hybrid projects to captive and C&I-led procurement. The rapid pace of industrialisation and urbanisation is pushing electricity demand to new highs, and wind energy, with its low carbon footprint and mature technology profile, is well-suited to meet this demand sustainably.
India’s ability to become a global wind power leader hinges on striking the right balance between promoting domestic manufacturing and ensuring project viability. Policy certainty, streamlined regulations, technological innovation and investor confidence must converge to unlock the full potential of the country’s wind energy sector. The progress achieved in 2024 is promising, but the path ahead requires sustained commitment, collaborative governance and strategic interventions to ensure wind energy becomes a foundational pillar of India’s clean energy future.
