Mumbai, July 2 -- The London Stock Exchange Group (LSEG) report Investing in the Green Economy 2026 found that India generated US dollar 110 bn (US$110 bn) in green revenues in 2025 and became one of Asia's fastest growing green markets, recording a 20 per cent compound annual growth rate over five years. The report said India deployed US$100 bn in clean energy investment during the year, ranking second in Asia after China. It added that 83 per cent of capital allocated to India's power sector was directed towards clean energy.

The study highlighted India's strength in specialised green technologies, noting India accounted for 87 per cent of Asia's green revenues from biogas equipment and 75 per cent of regional revenues from advanced irrigation systems. While Asia generated 47 per cent of global green revenues in 2025, India outpaced the regional average with a 20 per cent CAGR compared with Asia's 12 per cent and the global average of 10 per cent. Those figures indicate rapid expansion in domestic green industries.

The analysis observed that energy security continued to shape India's energy mix and that much of Asia remained dependent on fossil fuels even as clean energy investment accelerated. Globally the green economy crossed US dollar 10 tn (US$10 tn) in market capitalisation for the first time in 2025 and would rank as the world's third largest sector by market value if treated as a standalone industry behind technology and industrials. The milestone reflected rising investor interest and sectoral revaluation.

The report noted green bond issuance reached US$605 bn in 2025, rising five point seven per cent year on year, with the Asia Pacific recording the fastest growth at 42 per cent. It found that the green economy had outperformed global equities by 133 per cent since 2008, with valuations growing at an 18 per cent CAGR compared with 12 per cent for the broader market. The findings underline momentum in the green transition and the policy and investment choices required to sustain it.

Published by HT Digital Content Services with permission from Construction World.