India Hydroelectric Power Market Overview

The India hydroelectric power market size reached 50.7 GW in 2025 and is projected to reach 56.6 GW by 2034, growing at a CAGR of 1.24% during the forecast period 2026-2034. The market is driven by strong government support, private sector investments, and public-private partnerships that promote accelerated project development and the country's energy transition towards clean power. The report presents a thorough review featuring the India hydroelectric power market outlook, growth, share, trends, and research of the industry.

India Hydroelectric Power Market Study Assumption Years

• Base Year : 2025
• Historical Year/Period : 2020-2025

India Hydroelectric Power Market Key Takeaways

• Current Market Size : 50.7 GW
• CAGR : 1.24%
• Forecast Period : 2026-2034
• The market is expanding due to strong government policies providing financial incentives, streamlined approvals, and carbon reduction goals.
• Significant private sector investments and public-private partnerships (PPP) are fueling capital flows, innovation, and operational efficiency.
• In 2024, India launched a tender for 6GW renewable energy with storage capacity to support peak-hour power needs.
• Arunachal Pradesh sanctioned hydropower projects totaling 426 MW with investments of Rs 3,689 crore, showcasing regional development plans.
• Central public sector enterprises like NHPC and NEEPCO target achieving an operational hydroelectric capacity of 12,500 MW in two years.

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India Hydroelectric Power Market Growth Factors

The hydroelectricity market in India is highly influenced by government schemes. The government has offered several tax exemptions, subsidies, and attractive tariff policies. It has also eased project approval procedures and financial assistance to promote and expedite hydroelectric projects in the country. However, in an effort to reduce carbon footprints and shift from fossil fuels to renewable sources of energy, India has seen increases in renewable energy such as hydroelectric power.

PPPs and private sector financing are seen as avenues for both market growth, encouraged by government plans to upgrade infrastructure, and for financing, technology, efficiency and management in hydropower. The PPP model was adopted as a means of sharing resources, risk and benefits between the government and private sector in order to accelerate project delivery and avoid financial risk.

Technological and operational improvements continue to drive the market, and state companies have issued requests for proposals for 6GW of storage-enabled renewable generation to improve reliability and availability during peak demand. States such as Arunachal Pradesh which have high hydropower potential, are planning to invest heavily in a few large projects which contribute to India's energy security and decarbonization agenda.

India Hydroelectric Power Market Trends

The government of India is now encouraging the development of the India hydroelectric power industry by promulgating various policies. Financial incentives like tax holidays and subsidies are offered to projects. Other incentives include the setting of preferential tariffs. The government is also working towards simplifying and expediting the approval process for hydroelectric power projects.

The growth of renewable energy in India has been driven by renewable energy expansion targets with carbon emission reduction policies, policy measures, and an attempt to replace fossil fuels with clean energy. For example, in 2024 state-owned SJVN issued a tender for 6GW of renewables with storage providing peak-load reliability, as part of a total of 500GW non-fossil fuel capacity target.

However, private sector investments and PPPs play a key role within market growth. The Indian government focuses upon developing infrastructure, which attracts private sector investments to fund, create technology, and operate efficiently. Public-private partnerships allow collaboration and risk sharing between private sectors and public sectors, thus enabling faster implementation.

In this region, two large scale hydropower projects are proceeding in Arunachal Pradesh since total capacity reaches 426 MW with investment at Rs 3689 crore. The government companies NHPC and NEEPCO expect to increase their installed capacity to 12500 MW, in two years' time.

Other transparency and grid reliability measures include the JAL VIDYUT DPR portal launched in 2024 for online publication of information on hydro and pumped storage projects. India maintains compilations of various acts and regulations to foster project development and increase industrial productivity.

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India Hydroelectric Power Market Segmentation

Type of Hydroelectric Plant Insights:

• Large Hydroelectric Plants (Above 25 MW): Includes large-scale projects contributing significantly to the capacity.
• Small Hydroelectric Plants (1-25 MW): Covers smaller plants providing localized energy solutions.
• Micro Hydroelectric Plants (Up to 1 MW): Incorporates very small plants suited for niche or remote applications.

Component Insights:

• Turbines: Critical equipment converting water flow into mechanical energy.
• Generators: Devices converting mechanical energy into electrical energy.
• Transformers: Electrical devices used to transfer voltage levels within the system.
• Control Systems: Systems managing the operation and safety of hydroelectric plants.

End Use Insights:

• Residential: Consumption of hydroelectric power for household and domestic use.
• Commercial: Use in commercial establishments, businesses, and offices.
• Industrial: Utilization in manufacturing and heavy industries requiring large power supply.

Regional Insights

• North India
• South India
• East India
• West India

North India emerges as a dominant region reflecting a significant share in the market. The region shows robust growth aligned with the overall India hydroelectric power market CAGR of 1.24% during 2026-2034.

India Hydroelectric Power Market Key Players

The report offers an in-depth examination of the competitive landscape, including market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

India Hydroelectric Power Market Recent Developments & News

In March 2025, Himachal Pradesh signed Memorandums of Understanding (MoUs) with Telangana for establishing the 400 MW Seli and 120 MW Miar hydroelectric projects in Lahaul-Spiti, valued at Rs 6,200 crore, aimed at generating power for both states and creating employment for 5,000 youth. In August 2024, Union Minister Manohar Lal launched the JAL VIDYUT DPR portal and a CEA regulations compendium to improve transparency and efficiency in India’s hydropower sector. The portal monitors hydroelectric and pumped storage project activities, while the regulations compendium consolidates key Electricity Act provisions, aiding streamlined project development and grid stability.

India Hydroelectric Power Market Key Highlights of the Report

• Comprehensive analysis of historical trends and future outlook from 2020 to 2034.
• Detailed segmentation by type of hydroelectric plant, component, end use, and region.
• Insights into market drivers including government policies and private sector investments.
• Porter’s five forces analysis for competitive intensity and industry attractiveness.
• Competitive landscape with key player profiling and strategic insights.
• 10% free customization and extensive post-sale analyst support included.

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