Does renewable energy drive economic growth? Analyzing the role of green energy investments in india

Abstract

This study explores the relationship between renewable energy consumption and economic growth in India, with a particular focus on the role of green energy investments. As India strives to meet its climate goals while sustaining economic development, understanding the economic implications of renewable energy adoption becomes increasingly important. Using time-series data and advanced econometric techniques, the study investigates whether investments in renewable energy sources—such as solar, wind, and hydropower—contribute positively to the country's economic growth. The findings reveal a significant long-run relationship between green energy investments and GDP growth, suggesting that a transition towards clean energy can serve as a catalyst for sustainable economic development. The results support policy measures that encourage renewable energy deployment and increased financial support for green infrastructure. This research provides valuable insights for policymakers, investors, and stakeholders aiming to align India’s growth trajectory with environmental sustainability.