India generated $110 billion in green revenues in 2025, cementing its position as one of Asia's fastest-growing green economies, according to a report by the London Stock Exchange Group (LSEG). The country's clean energy and sustainability-linked businesses have expanded at a compound annual growth rate (CAGR) of 20 per cent over the past five years — nearly double Asia's average of 12 per cent and twice the global average of 10 per cent over the same period.

Key Findings from the LSEG Report

Despite contributing only around 4 per cent of Asia's total green revenues, India has carved out dominant positions in several high-value niche segments. According to the LSEG report, India accounts for nearly 87 per cent of Asia's green revenues from biogas energy equipment and 75 per cent of the region's revenues from advanced irrigation systems and devices.

These figures point to India's deepening capabilities in sustainable agriculture, decentralised energy systems, waste-to-energy technologies, and rural infrastructure — sectors that are often overlooked in headline clean energy narratives.

Clean Energy Investment Momentum

India attracted approximately $100 billion in clean energy investments in 2025, with nearly 83 per cent of power-sector capital expenditure directed towards renewable energy, energy storage, nuclear power, and energy efficiency projects, the report noted. This positions India among Asia's leading destinations for green capital, even as the broader region continues to rely on coal.

Notably, Asia remained the world's largest green revenue-generating region in 2025, contributing 47 per cent of global green revenues. The LSEG report also pointed out that coal continues to play a significant role in Asia's energy mix — a contradiction that underscores the uneven pace of the region's energy transition.

India's Niche Strengths Driving Growth

The standout story in India's green economy is not just scale but specialisation. The country's near-dominance in biogas equipment and advanced irrigation revenues within Asia reflects a bottom-up green transition — one driven as much by rural and agricultural demand as by utility-scale solar and wind projects. This comes amid India's broader push to meet its 2070 net-zero commitments and expand non-fossil fuel capacity.

This is the third consecutive year India has outpaced the Asian green revenue average, according to the LSEG data, suggesting the growth trajectory is structural rather than cyclical.

What to Watch

The LSEG findings underline that India's green economy, while still a fraction of Asia's total, is growing faster and in more diversified segments than the regional average. Analysts will be watching whether the 83 per cent renewables-skewed capex ratio is sustained in the next budget cycle and whether niche segments like biogas and smart irrigation can attract larger institutional capital to accelerate scale.