India Wind Power Market, By Application (Residential, Commercial, Industrial), By Installation (Onshore, Offshore), By Turbine Capacity (100 KW, 100 KW to 500 KW, 500 KW to 1 MW, 1MW to 3 MW, Less than 3 MW) By Region, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.11 Billion
Market Size (2031)	USD 13.71 Billion
CAGR (2026-2031)	6.89%
Fastest Growing Segment	Commercial
Largest Market	South India

Market Overview

India Wind Power Market was valued at USD 9.11 Billion in 2025 and is expected to reach USD 13.71 Billion by 2031 with a CAGR of 6.89% during the forecast period.

Wind power is a form of renewable energy that harnesses the natural movement of air in the Earth's atmosphere to generate electricity. It works by using wind turbines—large structures with blades that spin when the wind blows. As the blades turn, they drive a generator that converts kinetic energy from the wind into electrical energy. This clean energy source is sustainable, as wind is abundant and inexhaustible, making it an attractive alternative to fossil fuels.

Wind power is widely regarded as environmentally friendly because it produces no greenhouse gas emissions during operation. It helps reduce reliance on coal, oil, and natural gas, which contribute to air pollution and climate change. Modern wind farms can be located onshore (land-based) or offshore (in bodies of water), with offshore wind farms often benefiting from stronger and more consistent winds.

Advancements in technology have increased the efficiency and lowered the costs of wind power, making it a significant part of many countries’ energy strategies. While wind power depends on weather conditions and can be intermittent, integrating it with other energy sources and storage solutions helps ensure a stable power supply. Overall, wind power plays a crucial role in the global transition to cleaner, more sustainable energy systems.

Key Market Drivers

Government Policies and Supportive Regulatory Framework

The Indian government has played a crucial role in driving the growth of the wind power sector through a series of supportive policies and regulations. Over the years, India has recognized the importance of renewable energy in addressing energy security and environmental challenges, leading to the introduction of ambitious targets for renewable capacity additions, including wind power.

One of the key drivers is the establishment of favorable financial incentives such as accelerated depreciation benefits, viability gap funding, and tax exemptions. These incentives reduce the initial capital burden on investors and make wind projects more financially attractive. Moreover, the government has implemented Renewable Purchase Obligations (RPOs), which mandate that power distribution companies purchase a minimum percentage of their electricity from renewable sources. This policy creates a guaranteed market for wind energy producers, boosting investor confidence.

The Ministry of New and Renewable Energy (MNRE) has actively promoted wind energy by simplifying land acquisition procedures and providing clearances for project development. In addition, state-level policies complement national directives by offering additional subsidies and streamlined processes for wind power projects.

India’s National Wind-Solar Hybrid Policy encourages the combination of wind and solar power projects to maximize land and grid utilization, increasing overall renewable energy capacity. The government’s focus on integrating wind power into the national grid, along with investments in transmission infrastructure, addresses one of the major bottlenecks in the sector. India aims to achieve 500 GW of renewable energy capacity by 2030, with wind power expected to contribute around 140 GW.

Increasing Demand for Clean and Sustainable Energy

India’s rapid economic growth and urbanization have led to a significant rise in electricity demand. At the same time, the country faces pressing environmental concerns, including air pollution and climate change, largely due to its reliance on coal-based power plants. This combination of increasing energy needs and environmental challenges is a major driver for expanding the wind power market.

Wind power offers a sustainable solution by providing clean energy that does not emit harmful greenhouse gases or pollutants during operation. As awareness about the environmental impact of fossil fuels grows among policymakers, businesses, and consumers, there is a strong push toward adopting renewable energy sources. The wind energy sector helps India reduce its carbon footprint while meeting the growing electricity demand.

In addition, global climate commitments such as the Paris Agreement have prompted India to set ambitious renewable energy targets, including achieving 60 GW of wind power capacity by 2030. This international pressure reinforces domestic efforts to diversify the energy mix and transition away from fossil fuels. Moreover, businesses across various sectors are increasingly seeking green energy options to meet corporate sustainability goals and reduce energy costs. Many large industrial consumers are entering into power purchase agreements (PPAs) directly with wind power producers, driving demand from the commercial sector.

The residential and urban sectors also contribute, as rooftop and community wind power projects gain attention. The increasing demand for clean and affordable energy is thus a powerful force propelling the expansion of the wind power market in India. India’s electricity consumption is projected to grow at an annual rate of 6-7% over the next decade due to urbanization, industrialization, and population growth.

Technological Advancements and Cost Reductions

Technological innovations in wind turbine design, materials, and control systems have been instrumental in making wind power more efficient and cost-competitive in India. Advances such as larger rotor diameters, taller towers, and improved blade aerodynamics allow turbines to capture more wind energy, especially in areas with lower wind speeds.

These improvements increase capacity utilization factors, meaning more electricity can be generated from the same wind resource, enhancing project viability even in regions previously considered marginal. Additionally, the adoption of advanced digital technologies, including remote monitoring and predictive maintenance, reduces downtime and operational costs, improving overall performance.

The manufacturing sector has also evolved, with many Indian companies developing expertise in producing key components locally. This localization reduces dependency on imports, cutting costs and lead times for projects. Competitive bidding processes and better supply chain management have further driven down the cost of wind power installation and operation.

As a result, the levelized cost of electricity (LCOE) from wind power has declined significantly over the past decade, making it one of the most affordable sources of renewable energy in India. Lower costs attract more investors and expand the potential market beyond traditional high-wind zones. Furthermore, integration with energy storage technologies and hybrid systems (such as combining wind with solar) enhances reliability and grid stability, addressing intermittency challenges. These technological strides collectively boost the competitiveness and scalability of wind power, acting as a critical driver for the market’s growth. The average capacity of newly installed wind turbines in India has grown from around 1 MW a decade ago to 2.5-3 MW or more today, enabling higher energy capture per unit.

 

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Key Market Challenges

Grid Integration and Infrastructure Limitations

One of the most significant challenges facing the wind power market in India is the issue of grid integration and related infrastructure constraints. Wind energy, by its nature, is intermittent and variable, meaning that the electricity generation depends heavily on weather conditions and wind availability, which can fluctuate throughout the day and across seasons. This variability poses a considerable challenge for maintaining grid stability and ensuring a consistent supply of electricity.

India’s power grid infrastructure, especially in many wind-rich states, often struggles to keep pace with the rapid addition of renewable energy capacity. Transmission lines and substations are sometimes insufficient or outdated, limiting the ability to evacuate the generated wind power efficiently to demand centers. Congestion in transmission networks can lead to curtailment, where available wind energy is wasted because the grid cannot absorb or distribute it adequately. This results in lost revenue for developers and reduced overall efficiency of the renewable energy system.

Many wind power projects are located in remote or rural areas with limited connectivity to the main grid. Developing the required transmission infrastructure in these regions demands significant investment, coordination, and time. Delays in transmission expansion can stall project commissioning and affect timelines.

The existing grid management practices are also often designed around conventional, controllable power plants rather than variable renewable sources. Integrating large volumes of wind power requires advanced forecasting tools, real-time monitoring, and smart grid technologies that can balance supply and demand dynamically. While India has made progress in deploying these technologies, the pace is uneven across regions.

Another related challenge is the lack of sufficient energy storage solutions. Without affordable and scalable storage, excess wind energy generated during peak wind periods cannot be stored for use during calm periods. This further complicates grid management and limits the ability to maximize the utilization of wind power.

Addressing grid integration challenges requires coordinated efforts involving policy support, infrastructure investment, technological innovation, and regulatory reforms. Improving transmission capacity, adopting flexible grid management practices, and expanding storage capacity will be essential for unlocking the full potential of India’s wind power market.

Land Acquisition and Environmental Concerns

Land acquisition is another major challenge that hampers the growth of the wind power sector in India. Wind farms require considerable tracts of land to install multiple large turbines spaced appropriately to optimize wind capture. Acquiring this land often involves complex negotiations with landowners, local communities, and government bodies, which can be time-consuming and contentious.

In many cases, wind power projects compete with agricultural activities or other land uses, leading to conflicts with local farmers and residents. Landowners may demand high compensation or resist land sales due to concerns about losing their livelihood or disruption to their way of life. Additionally, unclear land titles and fragmented ownership patterns in rural India complicate acquisition processes further.

The procedural delays and disputes around land acquisition can significantly increase project development timelines and costs. This uncertainty discourages potential investors and developers from initiating new projects, especially in states where land issues are more acute.

Environmental concerns also pose challenges. Wind turbines have been criticized for their impact on local wildlife, particularly bird and bat populations. The placement of turbines in migratory paths or ecologically sensitive areas can lead to habitat disruption or fatalities. These environmental issues often trigger objections from conservation groups and require comprehensive impact assessments, adding to regulatory hurdles. Moreover, community acceptance is vital for project success. Noise generated by turbines and visual impact on landscapes sometimes face opposition from local residents. Addressing these social and environmental concerns requires transparent communication, stakeholder engagement, and adoption of mitigation measures.

To overcome these challenges, developers and policymakers need to adopt more inclusive land acquisition strategies that respect local communities’ rights and livelihoods. Exploring alternative land use models, such as wind-solar hybrid projects on non-agricultural lands or government-owned lands, can reduce conflicts. Enhanced environmental planning and monitoring protocols will also help balance renewable energy expansion with ecological preservation.

Key Market Trends

Growth of Offshore Wind Power Development

A notable emerging trend in the India wind power market is the increasing focus on offshore wind energy. While India has historically relied predominantly on onshore wind farms, recent years have seen a shift toward exploring the vast potential of offshore wind resources along the country’s extensive coastline.

Offshore wind power offers several advantages compared to onshore projects. Wind speeds at sea are typically stronger and more consistent, leading to higher energy yields. Additionally, offshore sites often face fewer land acquisition challenges since they are located away from populated or agricultural areas. This reduces conflicts over land use and can accelerate project development timelines.

Recognizing these benefits, the Indian government has initiated policies and frameworks to encourage offshore wind development. This includes identifying potential zones along the coasts of states like Gujarat, Tamil Nadu, and Andhra Pradesh, where wind conditions are favorable and grid connectivity can be enhanced. The Ministry of New and Renewable Energy (MNRE) has been actively promoting offshore wind through feasibility studies, pilot projects, and collaboration with international experts.

Several global offshore wind technology providers and investors have shown interest in the Indian market, bringing advanced turbine designs suited for marine environments and experience in large-scale offshore installations. The growing involvement of private companies and joint ventures is expected to speed up the commercialization of offshore wind projects.

Despite the promising outlook, offshore wind development in India is still in its infancy and faces challenges such as high upfront capital costs, the need for specialized infrastructure like ports and vessels, and technical complexities related to marine installation and maintenance. However, with continuous innovation and supportive government measures, offshore wind is poised to become a significant component of India’s renewable energy mix.

This trend aligns well with India’s broader energy transition goals, offering a pathway to diversify renewable sources, increase capacity, and strengthen energy security. The rise of offshore wind power is likely to create new opportunities for technology adoption, job creation, and regional economic development along India’s coastline.

Increasing Adoption of Hybrid Renewable Energy Systems

Another key market trend in India’s wind power sector is the growing adoption of hybrid renewable energy systems, which combine wind power with other energy sources, primarily solar photovoltaics (PV). This integrated approach addresses some of the inherent limitations of standalone wind or solar projects by improving reliability, efficiency, and overall power output.

Hybrid systems take advantage of the complementary nature of wind and solar resources. For example, solar energy generation peaks during the day, while wind speeds often increase at night or during different seasons. By co-locating wind turbines and solar panels, developers can ensure a more consistent and balanced energy supply, reducing intermittency and better aligning generation with electricity demand patterns.

The Indian government has supported this trend through specific policies such as the National Wind-Solar Hybrid Policy, which provides guidelines and incentives for hybrid project development. These policies encourage optimal use of land and grid infrastructure, enhancing the economic viability of projects.

Hybrid systems also simplify grid integration by reducing the variability challenges faced by single-source renewable projects. Additionally, combining wind and solar with battery storage solutions is becoming increasingly popular, further stabilizing power supply and enabling better load management.

Investors and developers are drawn to hybrid projects because they can diversify risks associated with weather variability and often benefit from economies of scale in installation, operation, and maintenance. Many states in India, including Karnataka, Tamil Nadu, and Rajasthan, are witnessing increased interest in hybrid tenders and project commissioning.

This trend not only supports India’s renewable capacity targets but also encourages innovation in technology and project design. The increasing adoption of hybrid systems is expected to play a vital role in enhancing the flexibility, resilience, and sustainability of India’s power sector, helping it transition smoothly toward a cleaner energy future.

Segmental Insights

Application Insights

The Industrial held the largest market share in 2025. The industrial sector dominated the India wind power market primarily due to its substantial and consistent energy requirements, cost-saving incentives, and increasing focus on sustainability. Industries such as manufacturing, textiles, chemicals, and heavy machinery consume large amounts of electricity to power their operations. Given the scale of their energy needs, these sectors are well-positioned to benefit from wind power, which offers a more economical and environmentally friendly alternative to conventional fossil fuel-based electricity.

One key reason for industrial dominance is the financial advantage that wind power presents. Wind energy has become one of the most cost-competitive renewable sources in India, with tariffs often lower than those of conventional power plants. Industries entering into long-term power purchase agreements (PPAs) with wind power producers can secure stable and predictable electricity prices, protecting themselves from volatile fossil fuel costs. This cost certainty helps companies manage operational expenses more effectively, improving profitability. Additionally, many industrial players are increasingly prioritizing corporate sustainability and environmental responsibility. Adopting wind power helps companies reduce their carbon footprint and comply with stricter environmental regulations. It also enhances their reputation among consumers and investors who are progressively valuing green business practices. By integrating wind energy, industries align with national and global climate goals, such as India’s commitment to the Paris Agreement.

The industrial sector’s ability to invest in large-scale renewable energy projects and negotiate PPAs directly with developers streamlines procurement and reduces reliance on the conventional grid. This direct engagement facilitates faster adoption and scale-up of wind power usage.

Installation Insights

The Onshore held the largest market share in 2025. Onshore wind power dominated the India wind power market primarily due to its established infrastructure, lower costs, and easier project development compared to offshore alternatives. India’s wind energy sector has historically focused on onshore wind farms because of the country’s vast land availability and favorable wind conditions across several states like Tamil Nadu, Gujarat, Maharashtra, and Rajasthan. These regions offer consistent wind speeds and suitable terrain that enable efficient energy generation.

One of the key reasons for onshore wind’s dominance is the relatively lower capital expenditure required for project setup. Onshore wind farms involve less complex engineering, construction, and maintenance processes compared to offshore projects, which require specialized vessels, marine-grade turbines, and underwater cabling. This cost advantage makes onshore wind more accessible to developers, especially in a price-sensitive market like India.

Regulatory frameworks and policies in India have been primarily designed to support onshore wind development. The existing transmission infrastructure is better suited to evacuate power from onshore sites to demand centers, reducing grid integration challenges. Onshore projects also benefit from quicker approval and land acquisition processes, despite some challenges, whereas offshore projects are still in nascent stages with evolving regulations.

Technological advancements have further enhanced the efficiency of onshore wind turbines, allowing for better energy capture even at lower wind speeds, thus broadening the potential sites for development. Additionally, the local manufacturing ecosystem for turbine components is largely tailored to onshore technology, supporting cost-effective supply chains.

 

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Regional Insights

South India held the largest market share in 2025. South India dominated the India wind power market due to a combination of favorable geographic, climatic, and infrastructural factors that make the region highly suitable for wind energy generation. States like Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana have consistently led wind power capacity additions in the country.

One of the primary reasons is the region’s excellent wind resource availability. South India benefits from strong and consistent wind speeds, particularly along coastal areas and elevated terrains such as the Western Ghats. The presence of these natural wind corridors enables efficient energy capture by wind turbines, leading to higher capacity utilization factors compared to other regions. Tamil Nadu, for example, has been a pioneer in wind energy development due to its strategic coastal location and favorable wind patterns.

South India has a well-developed renewable energy infrastructure and supportive policy environment. The states in the south have implemented attractive incentives, streamlined project approvals, and effective grid integration mechanisms that encourage investment in wind power projects. Tamil Nadu, in particular, was one of the first states to implement renewable purchase obligations and offer state-level subsidies, which significantly accelerated wind power growth.

The region’s proximity to industrial hubs and growing urban centers creates a strong demand for clean and affordable energy, making wind power a preferred solution for meeting electricity needs sustainably. Furthermore, South India’s better-developed transmission network allows efficient evacuation of wind power to high-demand areas, reducing energy losses and curtailment issues that affect other regions.

The availability of skilled workforce and established supply chains for wind turbine manufacturing and maintenance in South India supports the sector’s expansion. Local expertise and infrastructure help reduce project costs and improve operational efficiency.

Recent Developments

• On 17^th May 2025, ZF Wind Power has inaugurated its largest test rig in Tamil Nadu, boasting a capacity of 13.2 MW. This state-of-the-art facility is designed to support advanced testing and development of wind turbine components, enhancing the company’s capabilities in the renewable energy sector. The new test rig will enable ZF Wind Power to accelerate innovation, improve product reliability, and meet growing demand for efficient wind energy solutions in India and globally. This investment reinforces the company’s commitment to advancing wind technology.
• In April 2025, India has surpassed Germany to become the world’s third-largest generator of wind and solar power, according to a recent report. This milestone highlights India’s rapid expansion in renewable energy capacity, driven by strong government support, technological advancements, and increasing investments. The country’s commitment to clean energy and climate goals has accelerated the deployment of wind and solar projects, positioning India as a key player in the global renewable energy transition. This achievement reflects India’s growing leadership in sustainable power generation.
• In April 2025, In FY 2025, India installed an impressive 28 GW of combined solar and wind power capacity, marking a significant milestone in its renewable energy journey. This surge in installations reflects the country’s strong commitment to expanding clean energy infrastructure, supported by favorable policies, technological advancements, and growing investor interest. The addition of 28 GW further strengthens India’s position as a global leader in renewable energy, helping to meet rising electricity demand sustainably while reducing carbon emissions and advancing its climate goals.

Key Market Players

• Vestas Wind Systems A/S
• Siemens Gamesa Renewable Energy S.A.
• General Electric Company
• Goldwind Science & Technology Co., Ltd.
• Nordex SE
• Enercon GmbH
• Suzlon Energy Limited
• MingYang Smart Energy Group Co., Ltd.

By Application	By Installation	By Turbine Capacity	By Region
Residential Commercial Industrial	Onshore Offshore	100 KW 100 KW to 500 KW 500 KW to 1 MW 1MW to 3 MW Less than 3 MW	South India North India West India East India

Report Scope:

In this report, the India Wind Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Wind Power Market, By Application:

o   Residential

o   Commercial

o   Industrial

• India Wind Power Market, By Installation:

o   Onshore

o   Offshore

• India Wind Power Market, By Turbine Capacity:

o   100 KW

o   100 KW to 500 KW

o   500 KW to 1 MW

o   1MW to 3 MW

o   Less than 3 MW

• India Wind Power Market, By Region:

o   South India

o   North India

o   West India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Wind Power Market.

Available Customizations:

India Wind Power Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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