India is rapidly transforming its energy and transport sectors, emerging as one of the fastest-moving players in the global clean energy transition. From electric three-wheelers dominating city streets to a sharp rise in solar power generation, the country’s shift toward cleaner alternatives is gaining remarkable momentum.
Electric Three-Wheelers Lead the Charge
Electric mobility is expanding quickly across India, particularly in the three-wheeler segment. Around 60% of all three-wheelers sold in the country are now electric, making India the world’s largest market for electric three-wheelers.
These vehicles are not limited to major cities. They are increasingly common in rural areas, where they serve as affordable and energy-efficient transport options. In urban centers, electric rickshaws play a crucial role in last-mile connectivity, ferrying passengers between metro stations, offices, markets, and residential areas.
However, the rapid expansion has not been without challenges. A number of electric rickshaws operate without official permits, and some are powered through unauthorized electricity connections. Despite these concerns, the speed and scale of electrification highlight a strong national appetite for cleaner transport solutions.
Solar Power Gains Ground
While China is often seen as the global leader in clean energy, a new report by energy think tank Ember suggests India’s electrification pathway could advance even more rapidly.
A decade ago, India had minimal solar capacity. Today, solar energy accounts for roughly 9% of the country’s electricity mix, ranging from rooftop installations to large-scale solar farms. India has now become the world’s third-largest solar power producer.
When China reached a comparable income level in 2012, its solar sector was still in its early stages. India’s current pace of deployment suggests it may avoid the prolonged fossil fuel dependence seen in other major economies.
EV Adoption Expands
Electric vehicles (EVs) are also gaining traction beyond three-wheelers. EVs now make up about 5% of total vehicle sales in India—a significant rise from a decade ago, when electric mobility was virtually absent from the market.
Although the share remains modest compared to global leaders, the growth trajectory is strong, particularly in two- and three-wheeler categories that dominate Indian roads.
Fossil Fuels Still in the Mix
Despite impressive progress, India continues to rely heavily on fossil fuels. Coal remains a key part of the electricity grid, and plans are in place to expand coal mining in the coming decades. Oil demand is also rising alongside economic growth.
Experts note that while renewable capacity is expanding rapidly, it has not yet fully displaced coal power due to the country’s growing energy demand. However, Ember’s analysis indicates that India’s coal consumption is about 40% lower than China’s was at a similar stage of development. Oil demand per capita is also roughly half of what China recorded in 2012.
This suggests India could potentially “leapfrog” the most carbon-intensive phase of development by scaling renewables and electrification faster than previous industrial powers.
Cost Is the Key Driver
Falling technology costs are central to India’s clean energy acceleration.
In 2004, when China had a similar per-capita income level, coal was nearly ten times cheaper than solar energy. Today, solar power—combined with battery storage—costs roughly half as much as building new coal plants, according to Ember.
Battery prices alone dropped by about 40% in 2024, further boosting the economic case for electric mobility and renewable integration. In contrast, fossil fuel prices remain volatile and subject to geopolitical risks.
Energy Independence as a Strategic Goal
Energy security is another powerful motivator. India imports around 90% of its oil and roughly half of its natural gas, exposing it to global price fluctuations and supply disruptions.
Expanding domestic renewable energy capacity could significantly reduce this vulnerability. However, India still depends heavily on China for critical minerals and electronic components used in clean energy technologies.
To address this, the government has expanded domestic solar manufacturing capacity twelvefold over the past decade and launched initiatives to strengthen critical mineral supply chains. Recent agreements with the European Union are also aimed at diversifying trade partnerships.
A Model for Developing Economies?
India’s clean energy transformation remains a work in progress, and questions remain about how quickly fossil fuels can be phased down. Nevertheless, the country’s progress in solar generation, electric mobility, and moderated fossil fuel demand sets it apart among emerging economies.
If sustained, India’s strategy could offer a blueprint for other developing nations seeking economic growth without replicating the heavy fossil fuel dependence of earlier industrial powers.
The broader implication is clear: as clean technologies become cheaper and more accessible, the global balance of energy leadership may shift. India’s rapid transition could reshape international energy markets and intensify global competition in renewables and electric mobility.
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