Foreign direct investment (FDI) in India’s renewable energy sector has been gradually increasing over the past five financial years.
In the non-conventional energy sector, the FDI inflow during FY 2014-15 stood at $615.95 million, which increased to $776.51 million in the next fiscal year. In FY 2016-17, the FDI in the domestic market reached $783.57 million, and it went up to $1.2 billion in FY 2017-18. Further, the inflow increased to $1.44 billion in FY 2018-19.
Overall, in the past five fiscal years, the Indian power sector has attracted FDI totaling $5.4 billion while non-conventional energy sector attracted FDI totaling $4.8 billion.
Global investment in the renewable energy sector has gone up by 55% since 2010, according to the World Investment Report 2019 released by the International Energy Agency (IEA).
According to the report, investment in India’s energy sector has grown the most over the past three years.
According to Mercom’s Q1 2019 Solar Funding and M&A Report, the solar sector received $2.8 billion in corporate funding globally, including venture capital funding, public market, and debt financing.
Activity across venture capital funding, public market, and debt financing were up 10% in Q1 2019, compared to Q1 of 2018.
Reference- Mercom India, IEA website