In 2015, India had an installed wind power capacity of approximately 25 GW. Most projects were concentrated in the wind-rich states of Tamil Nadu, Gujarat, Karnataka, Maharashtra, Rajasthan and Andhra Pradesh. Until 2017, the industry experienced rapid growth under incentive-based policies such as accelerated depreciation, generation based incentives and preferential feed-in tariffs. Annual installations reached around 5.5 GW in FY 2016-17, which was considered a record for the sector.
A major turning point came in 2017 when India shifted from feed-in tariffs to a competitive bidding regime. While it succeeded in reducing tariffs and improving transparency, it also led to a temporary slowdown in capacity additions. Developers faced challenges related to land acquisition, transmission infrastructure, project execution and tariff viability. By the end of 2025, India’s installed wind power capacity had crossed 56 GW, more than doubling over the decade, while FY26 recorded a historic annual addition of over 6 GW, the highest ever.
Current Scenario
Gujarat has emerged as a particularly strong growth driver due to its vast wind resources, favourable policies and large renewable energy parks. Tamil Nadu continues to maintain a dominant position because of its extensive wind resource base and established ecosystem of manufacturers and service providers.
India’s wind sector is benefiting from supportive policies, improved turbine technology, growing corporate demand for renewable power and the rise of hybrid projects integrating wind, solar and storage. A stronger domestic manufacturing base has further enhanced competitiveness. However, challenges persist, including land acquisition hurdles, transmission constraints, high financing costs, project execution delays and the need for better grid integration. Addressing these issues will be critical to sustaining the sector’s growth momentum.
The future outlook for India’s wind industry is highly promising. Central government has indicated ambitious targets for wind energy expansion, with aspirations of reaching approximately 100 GW of installed wind capacity by 2030. Some long-term plans envision wind capacity reaching around 156 GW by 2036.
