Renewable Energy

The India–EU renewable energy trade corridor has emerged as one of the fastest-growing bilateral segments, reaching approximately €2.8 billion in 2025. India's solar module manufacturing capacity — supercharged by the Production-Linked Incentive (PLI) scheme for high-efficiency modules — now supplies crystalline silicon cells, inverters, and balance-of-system components to European markets accelerating their own decarbonisation timelines. In the opposite direction, European wind turbine OEMs, advanced battery storage systems, and green hydrogen electrolyser technology flow into India's rapidly expanding renewable infrastructure programme targeting 500 GW of non-fossil capacity by 2030.

The EU–India Trade and Technology Council has identified clean energy as a priority cooperation area, and the FTA negotiations reflect this with tariff elimination on solar panels, wind turbine components, and energy storage systems. The EU's Carbon Border Adjustment Mechanism (CBAM) adds urgency: Indian manufacturers who can demonstrate low-carbon production processes gain a structural advantage over competitors from coal-dependent supply chains. European buyers, meanwhile, benefit from India's cost-competitive manufacturing base — module prices 15–25% below European production — without compromising on IEC 61215/61730 certification standards.

Both sides stand to gain from deeper integration. India's renewable equipment exports to the EU grew at 18.2% CAGR over the past five years, and the FTA's green procurement provisions, mutual recognition of testing standards, and duty-free treatment of critical components position this corridor for sustained acceleration through the decade.