India's renewable energy FDI reached a record high of $1.6 billion in FY 2021-22

In FY 2021-22 (ending March 2022), India's foreign direct investment (FDI) in renewable energy reached a record high of US$1.
6 billion, up 101%
from US$797 million in the previous fiscal year.

FDI inflows from the renewable energy sector have increased steadily over the past few years, from $1.
2 billion in FY2017-18 to US$1.
45 billion
in FY2018-19.

No FDI went into coal production after FY 2013-14, indicating a clear shift
in investors' energy choices.
Investment in oil and gas has also been stable
over the past few years.

India's renewable energy sector has become attractive
from an investor's perspective due to increased government support and improved economy.
As India aspires to become a net-zero economy, the country's renewable energy sector could contribute more than $1 trillion by 2030 and $15 trillion in economic impact
by 2070.
FDI will play a key role
in channelling resources such as capital and advanced technologies into the sector.

Currently, under Indian policy, up to 100% FDI is allowed in the renewable energy sector without prior government approval
.

In March this year, the Parliamentary Standing Committee on Energy noted in a report on "Financial constraints in the renewable energy sector" that there was a considerable gap between required and actual investment and recommended that the Government establish an enabling framework to bridge this gap
.