According to the LSEG Investing in the Green Economy 2026 report, India is one of the fastest-growing green economies in Asia, generating green revenues of $110 billion in 2025. While India has a small market share of the total green economy market in Asia, the green revenues in India have grown at 20% CAGR compared to the average growth of 12% in Asia and 10% CAGR for the global market over the last five years.
Key Highlights
- India's green revenues grew at a CAGR of 20% over 5 years, the highest in Asia, at $110 billion.
- India also topped the Asian table in terms of green technology revenues - biogas equipment.
Despite the dominance of the larger Asian economies, the report indicates that India is making strong strides in sustainable industries, especially those associated with renewable energy, agriculture, and resource utilization.
India Strengthens Position in Key Green Sectors
India accounts for around 4% of the total green revenues in Asia, but has become a leader in a few niche areas. The country also generates 87% of the Asia green revenue from biogas energy equipments and 75% green revenues from advanced irrigation systems and devices. The strengths are associated with the increasing importance of clean energy, sustainable agriculture, rural infrastructure and waste-to-energy technologies in India.
Green revenues are defined as revenues collected by listed companies from the provision of products/services that directly support the green economy.
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Asia Continues to Lead the Global Green Economy
Asia continued to be the world's biggest green revenue region in 2025, accounting for 47% of all green revenues. The region's top contributor to green revenues was China with 41%, followed by Japan (28%), Hong Kong 10%, South Korea (6%), Taiwan (5%) and India (4%).
The area is still the leader in many green sectors like the manufacture of renewable energy equipment, electric vehicle batteries, transport infrastructure, pollution control technologies, and railway systems.
India Becomes Second-Largest Clean Energy Investor in Asia
The report noted, "Asia is the largest destination for clean-energy investment. China deployed around $625 billion across renewables, energy storage, nuclear and energy efficiency, while India followed with around $100 billion in clean-energy investment, accounting for 83% of its power-sector capital allocation."
China remained the leader in investments in the region, with around $625 billion of investments in renewable energy, energy storage, nuclear energy, and energy efficiency.
Growth Continues Despite Energy Security Challenges
Despite the growth of green industries, LSEG pointed out that there are still challenges in Asia to balance decarbonisation and energy security. The region is still highly reliant on imported fossil fuels and continues to consume a large percentage of global coal usage, spearheaded by the Chinese, Indian and economies of the Southeast Asian region.
The findings reveal a two-faced India, one where it is a relatively small share of Asia's listed green revenue base, and the other where it is one of the fastest-growing markets and has built significant competitive strengths in certain niche green technologies that are likely to play a major role in supporting the long-term sustainability goals of the country.
